Resolution of the Board of the National Bank of the Kyrgyz Republic No. 62/4 of 31 October 2011 on Amending and Supplementing the Temporary Rules for Regulating the Activities of Microfinance Companies in the Territory of the Kyrgyz Republic, Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 4/2 of 19 February 2003

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 31 October 2011 No. 62/4

On Amending and Supplementing the Temporary Rules for Regulating the Activities of Microfinance Companies in the Territory of the Kyrgyz Republic, Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 4/2 of 19 February 2003

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 introduce into the Temporary Rules for Regulating the Activities of Microfinance Companies in the Territory of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 4/2 of 19 February 2003, registered with the Ministry of Justice of the Kyrgyz Republic on 25 March 2003, registration number 29-03, the amendments and supplements (attached).

2. This resolution enters into force upon the expiry of one month after official publication.

Published in the journal "Normative Acts of the National Bank of the Kyrgyz Republic", No. 11/2011

3. After official publication, the Legal Department shall send this resolution to the Ministry of Justice of the Kyrgyz Republic for its inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

4. The Non-Bank Institutions Supervision Department shall bring this resolution to the attention of microfinance companies.

5. Control over the execution of this resolution shall be assigned to the Deputy Chairman of the National Bank of the Kyrgyz Republic Chokoev Z.L.

Chairman of the Board of the National Bank of the Kyrgyz Republic	Z. Asankozhoeva

	Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 62/4 of 31 October 2011

AMENDMENTS AND SUPPLEMENTS to the Temporary Rules for Regulating the Activities of Microfinance Companies in the Territory of the Kyrgyz Republic, Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 4/2 of 19 February 2003

To introduce into the Temporary Rules for Regulating the Activities of Microfinance Companies in the Territory of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 4/2 of 19 February 2003, registered with the Ministry of Justice of the Kyrgyz Republic on 25 March 2003, registration number 29-03, the following amendments and supplements:

1. Subparagraph 5.7.1 of paragraph 5.7 shall be restated as follows:

"5.7.1. The maximum risk on transactions with affiliated persons, including those who are insiders, expressed as the amount of the aggregate debt of affiliated persons to the MCC, shall not exceed 60% of the MCC's equity. It is prohibited to conduct transactions with insiders who are not affiliated persons, except for transactions on the provision of consumer loans to employees".

2. The Appendix "Form for compliance with economic ratios for MCCs licensed by the NBKR" shall be supplemented with a new row as follows:

Name of economic ratios	Designation	Calculation of the ratio	Actual value of the ratio	Established value of the ratio	Deviation from the established ratio
Maximum risk on transactions with affiliated persons		ADA*100% E		Not more than 60%

3. The Appendix shall be supplemented with a paragraph as follows:

"ADA - aggregate debt of affiliated persons.".