Resolution of the Board of the National Bank of the Kyrgyz Republic No. 36/4 of May 26, 2010 on Amendments to Resolution No. 18/3 on Asset Classification and Reserve Provisions

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of May 26, 2010 No. 36/4

On Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/3 "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions to the Reserve for Coverage of Potential Losses and Debts', registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number 95-04"

In accordance with Articles 7 and 43 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To make amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/3 "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions to the Reserve for Coverage of Potential Losses and Debts', registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number 95-04" (attached).

2. This Resolution enters into force from the moment of signing.

3. After official publication, the Legal Department shall submit this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Regulatory Legal Acts of the Kyrgyz Republic.

4. The Management Department for Supervision and Licensing shall bring this Resolution to the attention of commercial banks.

5. Control over the implementation of this Resolution shall be entrusted to the Acting Deputy Chairman of the National Bank of the Kyrgyz Republic A.A. Myrzaev.

Acting Chairman of the Board of the National Bank of the Kyrgyz Republic	Z. Chokoev
	Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 26, 2010 No. 36/4

AMENDMENTS to the Resolution of the Board of the National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/3 "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions to the Reserve for Coverage of Potential Losses and Debts', registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number 95-04"

To make the following amendments to the Regulation "On Classification of Assets and Corresponding Provisions to the Reserve for Coverage of Potential Losses and Debts", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/3 "On Approval of the New Edition of the Regulation 'On Classification of Assets and Corresponding Provisions to the Reserve for Coverage of Potential Losses and Debts', registered in the Ministry of Justice of the Kyrgyz Republic on August 23, 2004, registration number 95-04":

1. In the first sentence of paragraph 2.3, after the words "assignment to the client", add the words "on an individual basis".

2. In the fourth paragraph of paragraph 4.1.1, after the words "- other securities", add the words "provided that the minimum requirements established by Appendix 1 to this Regulation are met".

3. Supplement paragraph 4.3.2 with the following ninth paragraph:

"- primary loan restructuring."

4. In paragraph 7.1, before the words "Restructured loans", add the word "Re".

5. In the second paragraph of paragraph 10.5, after the words "listing category", add the words "provided that the minimum requirements established by Appendix 1 to this Regulation are met".

6. Supplement the Regulation with Appendix 1 in the following edition:

"Appendix 1 to the Regulation 'On Classification of Assets and Corresponding Provisions to the Reserve for Coverage of Potential Losses and Debts' of May 26, 2010 No. 36/4

MINIMUM REQUIREMENTS imposed on securities included in the listings of stock exchanges of the Kyrgyz Republic of the highest and next-highest listing categories

1. The issuer of the securities must have an investment rating of no lower than "BBB" according to the classification of the rating agency Moody's Investors Service or a rating of a similar level according to the classification of rating agencies Standard & Poor's, Fitch.

2. Transactions with these securities are not episodic in nature, that is, in the trading system of the exchange, no less than one transaction with these securities is concluded within a period of 30 calendar days.

3. The results of the retrospective analysis of the terms of the issuer's fulfillment of obligations on previously issued securities must provide grounds to believe that the issuer had no arrears in fulfilling obligations on the securities issued by it.

4. The issuer of the securities must have had profitable operations for the last reporting year or for the sum of the last three years."