Resolution of the Board of the National Bank of the Kyrgyz Republic No. 41/9 of October 31, 2012 on Amendments to Resolution No. 19/6

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of October 31, 2012 No. 41/9

On Amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Requirements for Banks and Other Financial and Credit Institutions Licensed and Regulated by the National Bank of the Kyrgyz Republic When Granting Loans to Individual Clients" dated May 18, 2012, No. 19/6

In order to enhance the efficiency, security, and reliability of the banking and microfinance system of the Kyrgyz Republic and to protect the rights of consumers of banking services, guided by Articles 3, 4, 7, 43 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", Articles 3, 4, 7, 35, 35-1, 36-1, 39, 39-1 of the Law of the Kyrgyz Republic "On Banks and Banking Activity in the Kyrgyz Republic", Articles 2, 5, 27, 33 of the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic", Articles 4, 30 of the Law of the Kyrgyz Republic "On Credit Unions", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. Redraft the first paragraph of the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Requirements for Banks and Other Financial and Credit Institutions Licensed and Regulated by the National Bank of the Kyrgyz Republic When Granting Loans to Individual Clients" No. 19/6 dated May 18, 2012, in the following wording:

"1. All commercial banks, microfinance organizations, credit unions, and the specialized financial-credit institution JSC 'FKKS' shall establish in the loan agreement with an individual client, including an individual entrepreneur without forming a legal entity, the size of the interest on the penalty (fines, late fees) for overdue debt on the principal amount and interest not exceeding the interest rate on the loan specified in the agreement. At the same time, the size of the penalty (fines, late fees) accrued for the entire period of the loan's validity shall not exceed 20 percent of the amount of the loan issued."

2. Commercial banks, microfinance organizations, credit unions, and the specialized financial-credit institution JSC "FKKS" from the date of entry into force of this Resolution shall execute new loan agreements in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Requirements for Banks and Other Financial and Credit Institutions Licensed and Regulated by the National Bank of the Kyrgyz Republic When Granting Loans to Individual Clients" dated May 18, 2012, No. 19/6.

3. The Resolution of the Board of the National Bank of the Kyrgyz Republic "On Requirements for Banks and Other Financial and Credit Institutions Licensed and Regulated by the National Bank of the Kyrgyz Republic When Granting Loans to Individual Clients" No. 19/6 dated May 18, 2012, shall also apply in cases of restructuring and extension of loans upon expiration of the term of loan agreements and in other cases of drawing up additional agreements.

4. The Legal Department:

• publish this Resolution on the official website of the National Bank of the Kyrgyz Republic;

• after official publication, send this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Legal Acts of the Kyrgyz Republic.

5. This Resolution enters into force after 15 days from the date of official publication.

6. The Supervision and Licensing Methodology Department shall bring this Resolution to the attention of commercial banks, microfinance organizations, the specialized financial-credit institution JSC "FKKS", and credit unions.

7. Control over the implementation of this Resolution shall be entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic Z.L. Chokoev.

Chairman	Z. Asankozhoeva