NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of December 23, 2009 No. 50/6

On Amendments and Additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3 "On Approval of the Regulation 'On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency and Pawnshop' and the Regulation 'On the Periodic Regulatory Report of a Microfinance Company',

registered in the Ministry of Justice of the Kyrgyz Republic on July 3, 2009, registration number 67-09

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 the attached amendments and additions to the resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3 "On Approval of the Regulation 'On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency and Pawnshop' and the Regulation 'On the Periodic Regulatory Report of a Microfinance Company', registered in the Ministry of Justice of the Kyrgyz Republic on July 3, 2009, registration number 67-09."

2. This resolution shall enter into force upon the expiration of one month from the date of its official publication.

3. Microfinance companies shall submit the periodic regulatory report in accordance with this resolution, starting with the report for the second quarter of 2010. Microcredit companies and microcredit agencies shall submit the periodic regulatory report in accordance with this resolution, starting with the report for the first half of 2010.

4. After official publication, the Legal Department shall forward 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.

5. The Non-Banking Institutions Supervision Department shall bring this resolution to the attention of microfinance companies, microcredit companies, and microcredit agencies, as well as regional departments and the Batsken Representative Office of the National Bank of the Kyrgyz Republic.

6. Control over the execution of this resolution is entrusted to the Board Member of the National Bank of the Kyrgyz Republic S.K. Alybaeva.

Chairman	M. Alapaev

	Approved by the resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2009 No. 50/6

AMENDMENTS AND ADDITIONS to the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3 "On Approval of the Regulation 'On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency and Pawnshop' and the Regulation 'On the Periodic Regulatory Report of a Microfinance Company'"

1. To make the following amendments and additions to the Regulation "On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency and Pawnshop," approved by the resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3, registered in the Ministry of Justice of the Kyrgyz Republic on July 3, 2009, registration number 67-09:

• in paragraph 3.5 of the Regulation, replace the sentence "The PRO consists of 5 sections" with the sentence "The PRO consists of 6 sections";

• in paragraph 3.5 of the Regulation, rephrase the title of Section 1 as follows:

"Section - 1. Regulatory Report on Financial Status";

• in paragraph 3.5 of the Regulation, rephrase the title of Section 2 as follows:

"Section - 2. Report on Comprehensive Income";

• supplement paragraph 3.5 of the Regulation with the twelfth paragraph as follows:

"Table G. 'Information on Issued Loans';

• supplement paragraph 3.5 of the Regulation with the following paragraph:

"Section - 6. 'Disclosures';

• supplement paragraph 7 'Information on the Credit Portfolio' of Appendix 1 "Composition of the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency" with the following paragraph:

"G. Information on Issued Loans";

• in paragraph 5, rephrase the title of Section 1 of Appendix 1 "Composition of the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency" as follows: "Regulatory Report on Financial Status";

• in paragraph 6, rephrase the title of Section 2 of Appendix 1 "Composition of the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency" as follows: "Report on Comprehensive Income";

• supplement Appendix 1 "Composition of the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency" with a new row as follows:

"

10	Section 6	Disclosures A. Liabilities B. Information on Loan Terms C. Gender Composition of Borrowers MCC/MCA	Semi-annual for MCC/MCA Annual for MCC/MCA	Within 12 calendar days following the reporting period Until February 1 of the year following the reporting period

";

• rephrase the title of Section 1 of Appendix 2 as follows: "Regulatory Report on Financial Status";

• rephrase the title of Section 2 of Appendix 2 as follows: "Report on Comprehensive Income";

• in subsection A "Classification of Assets by Risk Degree" of Section 3 of Appendix 2, replace the row "a) loans, repurchase agreements, and short-term operations with banks and credit institutions" with the row "a) loans to financial-credit institutions";

• supplement subsection B "Breakdown by Industries and Regions" of Section 3 of Appendix 2 with the row "Loans to financial-credit institutions";

• supplement Section 3 "Information on the Credit Portfolio" of Appendix 2 with Table "G. Information on Issued Loans":

"Section 3

G. Information on Issued Loans

No. p/p	Name of Item	Total loans issued during the reporting period	including by term							Weighted Average Interest Rate	Number of Loans
up to 30 days	from 30 to 90 days	from 90 to 180 days	from 180 to 365 days	from 1 to 2 years	from 2 to 3 years	from 3 to 5 years	over 5 years
	1	2	3	4	5	6	7	8	9	10	11	12
1	Industry
2	Agriculture
3	Procurement and Processing
4	Trade and Commerce
5	Services
6	Transport
7	Communications
8	Construction and Real Estate Purchase (including mortgages)
9	Individuals (consumer loans)
10	Loans to FCI
11	Other
11	Total Loans

Head of Executive Body: ______________ _____________

Date signature

Chief Accountant: ______________ _____________

Date signature";

• supplement Appendix 2 with Section 6 as follows:

"Section 6

Disclosures

A. Liabilities

No.		Amount of Funds Received	For What Term Were Funds Received		Amount of Paid Funds	Amount of Funds Received Gratuitously	Creditor	Condition
min.	max.
	1	2	3		4	5	6	7
1	'Loans Received'
a)	from banks and other FCI
b)	from international donor organizations
c)	from other sources of financing
2	Subordinated Debt Obligations
3	Other
TOTAL

B. Information on Loan Terms

No.	Product Name	Loan Amount per Client		Terms		Interest Rate per Month		Accrual Method
min.	max.	min.	max.	min.	max.	on balance	on initial balance
	1	1	2	3	4	5	6	7	8
1	Group Lending without Collateral
2	Group Lending with Collateral
3	Individual Lending without Collateral
4	Individual Lending with Collateral
5	Others
TOTAL

C. Gender Composition of Borrowers MCC/MCA

	Number of Borrowers on Issued Loans during the Reporting Period	Number of Borrowers on Credit Portfolio Balance as of the Date
Men
Women

Head of Executive Body: ______________ _____________

Date signature

Chief Accountant: ______________ _____________

Date signature".

2. To make the following amendments and additions to the Regulation "On the Periodic Regulatory Report of a Microfinance Company," approved by the resolution of the Board of the National Bank of the Kyrgyz Republic of May 27, 2009 No. 25/3, registered in the Ministry of Justice of the Kyrgyz Republic on July 3, 2009, registration number 67-09:

• exclude the second sentence of paragraph 4.2 of the Regulation;

• rephrase paragraph 4.5 of the Regulation as follows:

"4.5. In the event of any discrepancies, errors, incomplete provision, or incorrect completion of PRO forms, the Non-Banking Institutions Supervision Department (UNNU), Regional Departments (OU), or the Batsken Representative Office of the NBKR shall send the MFC a letter requiring report adjustment, with reflection in the financial statements within the following timeframes:

• for quarterly reports - within 3 working days from the date of receiving the report;

• for annual reports - within 5 working days from the date of receiving the report.

Adjusted reports together with the accompanying letter from the MFC must be submitted to the NBKR no later than 5 working days from the date of receiving the letter from the NBKR.";

• throughout the "Submission Deadlines" column of Appendix 1 "Composition of the Periodic Regulatory Report of a Microfinance Company," replace the words "within 10 calendar days" with the words "within 12 calendar days";

• rephrase the title of paragraph 5 of Section 1 of Appendix 1 "Composition of the Periodic Regulatory Report of a Microfinance Company" as "Regulatory Report on Financial Status";

• supplement paragraph 5 "Balance Sheet Report" of Appendix 1 "Composition of the Periodic Regulatory Report of a Microfinance Company" with the following paragraphs:

"G. Breakdown of Liabilities

D. Breakdown of Credit Portfolio";

• rephrase the title of paragraph 6 of Section 2 of Appendix 1 "Composition of the Periodic Regulatory Report of a Microfinance Company" as "Report on Comprehensive Income";

• in paragraph 8, rephrase the title of Section 4 of Appendix 1 "Composition of the Periodic Regulatory Report of a Microfinance Company" as follows:

"Information on Overdue Assets, Classification of Assets and Off-Balance Sheet Obligations by Risk Degree

A. Information on Overdue Assets

B. Classification of Assets and Off-Balance Sheet Obligations by Risk Degree

C. Information on Issued Loans

D. Lending Methods

E. Gender Composition of Borrowers

F. Classification of Loans by Risk Degree by Regions of the Kyrgyz Republic

G. Other Information by Regions of the Kyrgyz Republic";

• rephrase paragraph 11 of Section 7 of Appendix 1 "Composition of the Periodic Regulatory Report of a Microfinance Company" as follows:

"Changes in RPPU

A. Changes in Reserves for Possible Credit Losses

B. Information on Assets and Off-Balance Sheet Obligations Written Off against RPPU and Recovered (Previously Written Off)";

• supplement Section 1 "Regulatory Report on Financial Status" of Appendix 2:

• with the column "In Foreign Currency";

• with the tables "G. Breakdown of Liabilities" and "D. Breakdown of Credit Portfolio" as follows:

"Section 1

Regulatory Report on Financial Status

G. Breakdown of Liabilities

	Amount of Funds Received	For What Term Were Funds Received		Amount of Paid Funds	Amount of Funds Received Gratuitously	Creditor	Condition
		min.	max.
1	2	3		4	5	6	7
1. Loans Received
a) from banks
b) from other financial institutions
c) from international financial institutions (other financial sources)
2. Conditional Grants
3. Other Liabilities
TOTAL

D. Breakdown of Credit Portfolio

Product Name	Loan Amount per Client		Terms		Interest Rate per Month		Accrual Method
min.	max.	min.	max.	min.	max.	on balance	on initial balance
	1	2	3	4	5	6	7	8
Group Lending without Collateral
Group Lending with Collateral
Individual Lending without Collateral
Individual Lending with Collateral
Others
TOTAL

Position: ___________ Surname: __________ Signature: ______________

Position: ___________ Surname: __________ Signature: ____________";

• rephrase Section 2 of Appendix 2 as follows:

"Section 2

Report on Comprehensive Income

Thousand som

A. Interest Income	Current Period	Year-to-Date
1. Income from interest on deposits and accounts in commercial banks
2. Income from interest on securities
3. Income from interest on loans to FCI
4. Income from interest on loans and advances
5. Other interest income
6. TOTAL: INTEREST INCOME
B. Interest Expenses
7. Interest expense on term deposits of legal entities
8. Interest expense on term deposits of individuals
9. Interest expense on loans from banks
10. Interest expense on loans from other financial institutions
11. Interest expense on loans from international financial institutions (other sources of financing)
12. Other interest expenses
13. TOTAL: INTEREST EXPENSES
14. NET INTEREST INCOME
15. RESERVES FOR POSSIBLE CREDIT LOSSES
16. NET INTEREST INCOME AFTER CHARGES TO RESERVE FOR POSSIBLE CREDIT LOSSES
C. Non-Interest Income
17. Commissions and fees for services
18. Income from exchange rate differences
19. Income/dividends from equity investments and shares, including in subsidiaries and associated companies
20. Other non-interest income
21. TOTAL: NON-INTEREST INCOME
D. Non-Interest Expenses
22. Expenses for specialist services and banking services
23. Losses from exchange rate differences
24. Other non-interest expenses
25. Total: Non-Interest Expenses
E. Operational and Administrative Expenses
26. Salaries and other personnel expenses
a) salaries and bonuses
b) other payments and subsidies
c) payments to the Social Fund
27. Fees to Board of Directors members
28. Other expenses for fixed assets, including property tax
a) rent
b) utilities
c) depreciation expenses
d) other expenses
e) property tax
29. Taxes and Insurance
30. Other operational and administrative expenses
31. TOTAL: OPERATIONAL EXPENSES
32. Total: Operating Income (Loss)
33. Reserves for other possible losses and losses (not from credit operations)
34. NET OPERATING INCOME (LOSS)
35. Profit Tax
36. NET PROFIT (LOSS)

Position: ___________ Surname: __________ Signature: ______________

Position: ___________ Surname: __________ Signature: ____________";

• rephrase subsection 4.1 of Section 4 of Appendix 2 as follows:

"Section 4

Subsection 4.A. Information on Overdue Assets

(in thousand som)

Items	Total (sum of columns 3 and 5)	Current (Non-Overdue)	Prolonged Loans
1	2	3	4
1. Loans and financial leasing to clients
a) industry
b) agriculture
c) procurement and processing
d) trade and commercial operations
e) services
f) transport
g) communications
h) construction and mortgages
i) individuals (consumer loans)
k) other loans
Loans to FCI
3. Other assets, including off-balance sheet assets
4. Total

Total Overdue Loans	Up to 30 days	From 31 to 60 days	From 61 to 90 days	From 91 to 120 days	From 121 to 180 days	From 181 to 360 days	Over 360 days	Total Loans in Non-Accrual Status
5	6	7	8	9	10	11	12	13

Amendment to Section 7 of Appendix 2

Reference Table

Reference:	Batken	Jalal‑Abad	Issyk‑Kul	Naryn	Osh	Talas	Chuy	Bishkek city	Total
Number of branches
Number of representative offices
Number of credits
Number of borrowers
Number of depositors

Position: ___________ Surname: __________ Signature: ______________

Position: ___________ Surname: __________ Signature: ____________

---

• Section 7 of Appendix 2 shall be set out in the following wording:

Section 7

Changes in RPPU

A. Changes in reserves for covering possible credit losses

Thousands of som

Item	Amount
1	2
1. Balance of the Reserve for covering possible credit losses at the beginning of the reporting period, total
a) special reserves (classified loans)
b) general reserves (possible loss on all loans)
2. (plus) Returned assets
3. (minus) Written‑off assets
4. Contributions to RPPU since the beginning of the year
5. Adjustment
6. Balance of the reserve at the end of the reporting period, total
a) special reserves (classified loans)
b) general reserves (possible loss on all loans)

Position: ___________ Surname: __________ Signature: ______________

Position: ___________ Surname: __________ Signature: ____________

B. Information on assets written off at the expense of RPPU and returned (previously written off) assets and off‑balance‑sheet liabilities

Item	Write‑off – A		Return – B		Net write‑off (column A minus column B)
	Total	Including in other currencies	Total	Including in other currencies	Total	Including in other currencies
1	2	3	4	5	6	7
1. Loans and financial leasing to financial‑credit institutions:
a) loans, repo operations and short‑term operations with banks and financial‑credit institutions
b) correspondent accounts in other banks
c) deposits in other banks
2. Loans and financial leasing to other clients:
a) industrial loans
b) loans for agriculture, harvesting and processing
c) loans for trade and commercial operations
d) construction loans
e) mortgage loans
f) individuals (consumer loans)
g) other loans
3. Total loans
4. Investments in securities and/or capital
5. Other bank property taken as asset repayment
6. Other assets
7. Total assets subject to classification
8. Off‑balance‑sheet liabilities
9. Total assets and off‑balance‑sheet liabilities subject to classification
Reference: total amount of written‑off loans recorded in off‑system accounting

Position: ___________ Surname: __________ Signature: ______________

Position: ___________ Surname: __________ Signature: ____________