NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of September 23, 2009 No. 38/5

On Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 29, 2004 No. 36/13 "On Approval of the Instruction "On the Procedure for Compliance with Open Currency Position Limits by Commercial Banks in the Territory of the Kyrgyz Republic", registered in the Ministry of Justice of the Kyrgyz Republic on February 1, 2005, registration number 16-05

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. Make amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 29, 2004 No. 36/13 "On Approval of the Instruction "On the Procedure for Compliance with Open Currency Position Limits by Commercial Banks in the Territory of the Kyrgyz Republic", registered in the Ministry of Justice of the Kyrgyz Republic on February 1, 2005, registration number 16-05, according to the Appendix to this Resolution.

2. This Resolution enters into force after the expiration of one month after its official publication.

Published in the journal "Regulatory Acts of the National Bank of the Kyrgyz Republic", No. 2009/11

3. The Legal Department is to send 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. Control over the implementation of this Resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic K.K. Bokonbaev.

Chairman	M. Alapaev

	Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic of September 23, 2009 No. 38/5

Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 29, 2004 No. 36/13 "On Approval of the Instruction "On the Procedure for Compliance with Open Currency Position Limits by Commercial Banks in the Territory of the Kyrgyz Republic", registered in the Ministry of Justice of the Kyrgyz Republic on February 1, 2005, registration number 16-05

Make the following amendments to the "Instruction" on the Procedure for Compliance with Open Currency Position Limits by Commercial Banks in the Territory of the Kyrgyz Republic, approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 29, 2004 No. 36/13 "On Approval of the Instruction "On the Procedure for Compliance with Open Currency Position Limits by Commercial Banks in the Territory of the Kyrgyz Republic", registered in the Ministry of Justice of the Kyrgyz Republic on February 1, 2005, registration number 16-05:

• in the second paragraph of the preamble, exclude the words ", Calculation-Savings Company";

• in the second sentence of the second paragraph of paragraph 2.2 of section II, exclude the words ", including accrued interest income/expenses in this currency";

• rephrase the fifth paragraph of paragraph 2.2 of section II as follows:

"- Irrevocable guarantees, letters of credit, and similar financial instruments issued or confirmed by the bank, denominated in foreign currency, except for guarantees, letters of credit, and similar financial instruments secured in the same currency. For the purposes of this Instruction, financial instruments imply bill guarantees (aval), traveler's checks, and other conditional obligations of the bank accepted in international practice. Credit lines are not considered financial instruments.

In this regard, the aforementioned guarantees, letters of credit, and similar financial instruments are included in the calculation of the net currency position from the moment the beneficiary (beneficiary) submits a claim for payment of the monetary amount under the obligation or the bank receives documented information indicating a high probability of submission of a claim for payment under the aforementioned obligations. For example, a letter from the beneficiary regarding non-performance (delay in performance) of the principal's obligations is grounds for including the guarantee in the calculation of the net currency position.";

• in paragraph 4.1 of section IV, after the word "Appendix", add the number "1".