NBKR Treasury Notes 

(October 2008) 

In October on the primary market of the National Bank of the Kyrgyz Republic notes in conditions of excessive liquidity level reduction in the banking system, the demand on the part of investors considerable decreased. Herewith the National Bank of the Kyrgyz Republic reduced supply volume for 7 day notes that decreased their profitability rate. In October, profitability rate of 14 and 28 days notes of NBKR increased compared with the previous month. In the sector of 91- and 182-day notes, two tenders on allocation of 91-days notes and one tender on allocation of 182-day notes were found to be aborted due insufficient number of participants.  

The weighted average profitability rate on all types of notes within a month increased by 0.1 percentage points and constituted 13.2 percent. Among them, the profitability rate of 7-day notes decreased by 0.2 percentage points and constituted 9.4 percent, whereas the profitability rate of 14-day and 28-day notes increased by 0.7 percentage points to 14.0 percent and 0.5 percentage points to 15.9 percent correspondingly. 

The overall volume of sales on all types of notes in October decreased by 51.2 percent and constituted 1726.5 million soms. The average weekly demand volume for the notes of the National Bank of the Kyrgyz Republic constituted 541.8 million soms, decreasing by 37.5 percent in comparison with the previous month, whereas the volume of sales within a week decreased by 39.0 percent and constituted 431.6 million soms. . 

Within a month, the volume of the NBKR notes in circulation decreased by 43.0 percent and constituted 1006.9 million soms by the end of the month. In the structure of notes holders, the share of commercial banks decreased from 85.8 to 83.2 percent. At the same time the share of resident legal entities increased from 13.0 to 13.7 percent and resident individuals from 0.2 to 2.0 percent. The share of institutional investors was left unchanged at the level of 1.0 percent. Herewith, the number of commercial banks holding the NBKR notes increased 17 to 18 banks and the bank portfolio concentrating index increased from 0.12 to 0.13 that testifies an average concentration rate and is equal to the presence of seven banks on the market with equal shares.