Resolution of the Board of the National Bank of the Kyrgyz Republic No. 37/6 of December 15, 2005 on Amendments and Additions to the Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic

Registered in the Ministry of Justice of the Kyrgyz Republic

January 18, 2006. Registration number 9-06

RESOLUTION

OF THE BOARD

OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

city of Bishkek

of December 15, 2005 No. 37/6

On Amendments and Additions

to the "Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic"

Having considered the proposed amendments and additions to the "Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic",

in order to improve the regulatory framework for the activities of credit unions, the Board of the National Bank of the Kyrgyz Republic

resolves

1. To approve the proposed amendments and additions to the "Rules Regulating the Activities of Credit Unions in the Kyrgyz Republic".

2. This resolution shall enter into force after state registration in the Ministry of Justice of the Kyrgyz Republic and subsequent official publication.

3. The Management of Supervision and Licensing Methodology, together with the Legal Department, shall carry out the state registration of this resolution in the Ministry of Justice of the Kyrgyz Republic in the established manner.

4. The Department of External and Public Relations shall publish this resolution within ten days from the date of its state registration in the Ministry of Justice of the Kyrgyz Republic.

5. The Management of Supervision of Non-Banking Institutions shall bring this resolution to the attention of the regional administrations and the representative office of the National Bank of the Kyrgyz Republic in the Batken region.

6. After the publication of the registered normative legal act, inform the Ministry of Justice about the source of publication (name of the edition, its number and date).

7. Control over the implementation of this resolution is entrusted to the Deputy Chairman of the NBRK, S.E. Zhanibekova.

Chairman of the Board Sarbanov U.K.

Approved

by the Resolution of the Board

of the National Bank

of the Kyrgyz Republic

AMENDMENTS AND ADDITIONS

to the "Rules Regulating the Activities of Credit Unions

in the Kyrgyz Republic".

Make the following amendments and additions to the "Rules Regulating the Activities of Credit Unions in the

Kyrgyz Republic", approved by the Resolution of the Board of the NBRK of

May 4, 2005 No. 14/2, registered by the Ministry of Justice of the Kyrgyz Republic of June 6, 2005, registration number 73-05:

1. Paragraph 5.1. shall be worded as follows:

"The maximum external borrowing ratio of a credit union (N1) represents the maximum volume of external

borrowing that a credit union can obtain. This ratio applies to credit unions that have debt to the LLC

'Financial Company for Support and Development of Credit Unions in the Kyrgyz Republic'.

External borrowings include funds borrowed by a credit union from financial and credit institutions licensed and regulated

by the NBRK, as well as government bodies, international financial institutions, and from other external sources based on credit

contracts.

To calculate the maximum external borrowing ratio of a credit union (N1), the following are used: institutional capital

of the credit union - IC, coefficient - K, equity capital - EC, and external borrowings - EB."

2. Paragraph 5.6.5. shall be worded as follows:

"For existing credit unions, the values of the institutional capital adequacy ratio (N6-1) and the total capital adequacy ratio (N6-2) are determined according to the schedule provided in the table:

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Period	3rd year	4th year or	5th year or	6th year	7th year or	8th year onwards
of operation		from	from	from	from	from 01.04.09
of the credit		01.06.05	01.04.06	01.04.07	01.04.08
union
_____________	______	_________	_________	________	_________	___________
N6-1 = IC/TA x	>3%	>6%	>6%	>9%	>9%	>12%
100	-
_____________	______	_________	_________	________	_________	___________
N6-2 = (IC +	>13%	>14%	>14%	>16%	>16%	>18%
EC) / TA x
100
_____________	______	_________	_________	________	_________	___________

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