NBKR Treasury Notes 

(November 2008) 

In November on the primary market of the National Bank of the Kyrgyz Republic notes, the demand on the part of investors a bit increased, due to activity acceleration of legal entities and individuals as well as of institutional investors. This fact affected the reduction of notes profitability.  

The weighted average profitability rate on all types of notes within a month decreased by 0.1 percentage points and constituted 13.1 percent. Among them, the profitability rate of 7-day notes decreased by 0.6 percentage points and constituted 8.8 percent, the profitability rate of 14-day by 0.2 percentage points up to 13.8 percent and 28-day by 0.6 percentage points to 15.3 percent. 

The weekly demand volume for NBKR notes increased by 22.5 percent in comparison with the previous month and constituted 664.0 million soms, whereas the average weekly volume of sales increased by 12.2 percent and constituted 483.9 million soms. 

Within a month, the volume of the NBKR notes in circulation increased by 16.9 percent and constituted 1176.8 million soms by the end of November. In the structure of notes holders, the share of commercial banks decreased from 83.2 to 68.0 percent. At the same time the shares of resident legal entities increased from 13.7 to 20.9 percent and resident individuals from 2.0 to 8.5 percent. Herewith, the number of commercial banks holding the NBKR notes decreased 18 to 15 banks and the bank portfolio concentrating index increased from 0.13 to 0.42 that testifies a high concentration rate and is equal to the presence of two banks on the market.