NBKR Treasury Notes 

(May 2009) 

In May, the National Bank of the Kyrgyz Republic in conditions of high liquidity rate of the banking system increased the supply volume of its notes. At that the demand for notes on the part of investors also increased and within the reporting month exceeded their supply, that affected the decrease of the NBKR notes profitability rate in all market segments. In general the weighted average profitability rate on all types of noted decreased by 1.3 percentage points and constituted 8.6 percent, including: profitability rate of 7-day notes decreased by 1.0 percentage points and constituted 6.1 percent, 14-day noted by 0.9 percentage points to 9.4 percent, 28-day notes – by 1.8 percentage points and constituted 9.9 percent. The auctions on allocation of 91- and 182-day notes were not performed in May.  

The average weekly demand volume for the notes of the National Bank of the Kyrgyz Republic in May constituted 598.3 million soms, having increased by 1.4 percent in comparison with the previous month, whereas the volume of sales within a week increased by 33.4 percent and constituted 4653.9 million soms.  

The volume of the NBKR notes in circulation increased by 28.2 percent within the month and constituted 1119.1 million soms by the end of the month. In the structure of the NBKR notes holders, the shares of commercial banks and institutional investors increased from 80.2 to 84.2 and from 7.0 to 13.2 percent correspondingly. The share resident individuals remained at the level of April and constituted 0.1 percent and the share of resident legal entities decreased from 12.8 to 2.5 percent. At that the number of commercial banks holding the NBKR notes decreased from 16 to 13 banks and the NBKR treasury notes portfolio concentrating index increased from 0.10 to 0.14 that testifies an average concentration rate and is equal to the presence of seven banks on the market with equal shares.