ь On monetary and credit policy in the first quarter of 2009. On May 27, 2009, the Board of the National Bank of the Kyrgyz Republic discussed the results of the monetary and credit policy for the first quarter of 2009 and the monetary and credit program for the following period.  

In the course of discussion it was noted that the major attention of the National Bank of the Kyrgyz Republic was concentrated on created of favorable conditions for control of the general prices rate growth. Reduction of inflation risks in the current year, creates pre-conditions for weakening of the monetary and credit policy and expands the possibilities of the National Bank of the Kyrgyz Republic in fulfillment of the objectives for promotion of the long term economic growth.  

According to the National Statistics Committee, the increase in CPI, characterizing the inflation rate, constituted 0.4 percent in the first quarter of 2007, whereas in the corresponding period of the past year this rate was 6.1 percent.  

Decrease in the general price rate growth in the republic was provided by weakening of external factors in combination with measures on tightening of the monetary and credit policy, started in autumn 2007 and being performed within the past year. In particular this policy was expressed in decrease of money supply growth rates and increase of the discount rate.  

Lately, the National Bank of the Kyrgyz Republic was gradually decrease the volume of its transactions in the open market, that led to decrease in the volume of notes in circulation from 1.6 billion soms to 0.9 billion soms as of the end of March of this year. Moreover starting from February of the present year, the National Bank has not performed the reverse REPO-transactions. The discount rate of the National Bank of the Kyrgyz Republic within the first quarter of 2009 decreased from 15.22 to 12.79 percent. Hereafter the discount rate continued decreasing and as of the end of May it constituted 9.95 percent.  

In the first quarter, the increased demand for foreign currency in the domestic market, traditional for this period, was strengthened by expectations of the national currency depreciations, provided by intense depreciation of the Russian ruble and acute single-step depreciation of the Kazakh tenge. This led to necessity in more active participation of the National Bank of the Kyrgyz Republic in transactions in the inter-bank foreign exchange market, to prevent acute fluctuations of the KGS exchange rate. The volume of the foreign currency net sale by the National Bank of the Kyrgyz Republic constituted 148.4 million USD (in the first quarter of the past year, the net sale constituted 79.6 million USD). Increase in USD exchange rate against KGS constituted 8.15 percent (in the first quarter of the past year – 2.56 percent).  

Despite a continuing influence of the global financial and economic crisis, in the first quarter of the present year, it was possible to maintain the positive growth rates of the major indices of the banking system. Assets of the banks increased by 13.6 percent and constituted 62.4 billion soms as of the end of March of 2009. The credit portfolio of banks increased by 0.6 percent and constituted 25.7 billion soms. The volume of deposits as of the end of March 2009 constituted 33.6 billion soms, having increased by 1.9 percent from the beginning of 2009. The capital of the banking system also increased by 3.7 percent and constituted 13.3 billion soms as of the end of March 2009. Net profit, received by banks in the first quarter of 2009, constituted 371.5 million soms.  

The Board of the National Bank of the Kyrgyz Republic noted that in the following period, there are a number of factors, which may have a considerable influence on the conditions for the monetary and credit policy performance. In case of the budget deficit growth, as a result of increase in the governmental expenses, financed from external sources, there an additional inflation pressure may occur, which will lead to necessity in increase of the transactions on excess liquidity sterilization. The existing uncertainty regarding the depth and possible consequences of the global financial and economic crisis, maintains the risks related to economic development of the Kyrgyz Republic. Decrease in demand for the production on part of neighboring countries, decrease in incomes, received from labor migrants, may lead to worsening of stability of the balance of payments, which will put pressure on the KGS exchange rate. The National Bank of the Kyrgyz Republic is going to maintain the currency policy, aimed at prevention of acute fluctuations of the Kyrgyz currency with regard to necessity in maintenance of the international reserves at the efficient level.  

News of non-banking financial and credit institutions 

The National Bank of the Kyrgyz Republic issued licenses/certificates to the following non-banking financial institutions and exchange offices: 

1. LLC MCA “DinarKredit” (Account Registration Certificate No.214 dated June 1, 2009 for micro crediting individuals and legal entities). Legal address: 38, Shamsinskaya Str., Tokmok, Chui oblast; 

2. LLC MCA “Bereke plus” (Account Registration Certificate No.215 dated June 1, 2009 for micro crediting individuals and legal entities). Legal address: 1, Kojevennaya Str., Bishkek; 

3. Additional Responsibility Society pawn office “Emma +” (license No.414 dated June 1, 2009 for conducting operations on granting short-term credits secured by movable property (pawn)). Legal address: central market (entrance to vegetable pavilion), Aytmatova Str., Jalalabat, Jalalabat oblast; 

4. PE Buhta Yulia Aleksandrovna (License No. 4049 dated June 1, 2009 for conducting cash foreign exchange transactions). Registration numbers of exchange offices:  

2259 – Legal address: 1-23, Baytik Baatyra, Bishkek; 

2260 – Legal address: 92, Nekrasova Str., Bishkek. 

5. PE Nesterova Vera Aleksandrovna (License No. 4050 dated June 1, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2261. Legal address: 104a, Bokonbaeva Str., Bishkek; 

6. PE Sultanova Nurzat Omonovna (License No. 4051 dated June 1, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2262. Legal address: container No.10, Chimkent bus stop, Trade Center Dordoi, Bishkek; 

7. PE Yuldashev Zafarjan Sadykjonovich (License No. 4052 dated June 2, 2009 for conducting cash foreign exchange transactions). Legal address: LLC Aybek-Bazary, Asanalieva Str., Kyzyl Kiya, Batken oblast; 

8. PE Shomshidinov Bahodirjon Sulaimanovich (License No. 4053 dated June 2, 2009 for conducting cash foreign exchange transactions). Legal address: Ulugbek cafй, LLC Aybek-Bazary, Asanalieva Str., Kyzyl Kiya, Batken oblast; 

9. PE Toshaliev Mansur Mamurjanovich (License No. 4054 dated June 2, 2009 for conducting cash foreign exchange transactions). Legal address: Uch-Korgon village, Kadamjaiskiy rayon, Batkent oblast; 

10. PE Danyshmanov Emil Mamatkadyrovich (License No. 4055 dated June 3, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2263. Legal address: 150, Abdrahmanova Str., Bishkek; 

11. PE Zaitov Akramjan Turganovich (License No. 4056 dated June 4, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2264. Legal address: Trade Center Madina, 4b, Chui avenue, Bishkek; 

12. PE Aldasheva Asel Turgunbekovna (License No. 4057 dated June 4, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2265. Legal address: 144, Abdrahmanova Str., Bishkek; 

13. PE Ermekova Altynai Abdyldaevna (License No. 4058 dated June 4, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2266. Legal address: container No.17, central passage, Trade Center Dordoi, Bishkek; 

14. PE Pechurin Sergey Nikolaevich (License No. 4059 dated June 4, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2267. Legal address: 18 (ARGO pavillion), Kojomberdieva Str., Kara-Balta, Chui oblast; 

15. PE Zakirov Talant Tolonbaevich (License No. 4060 dated June 4, 2009 for conducting cash foreign exchange transactions). Registration numbers of exchange offices:  

2268 - Legal address: 100/3, Ahunbaeva Str., Bishkek; 

2269 - Legal address: 100/33, Ahunbaeva Str., Bishkek; 

2270 - Legal address: 58, Moskovskaya Str., Bishkek; 

16. PE Pratov Hayrullo Eminjonovich (License No. 4061 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address: kiosk No.4, central market, Nookat, Osh oblast; 

17. PE Ahunjanov Mahamadvali (License No. 4062 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address: eating house Nooruz, central market, Nookat, Osh oblast; 

18. PE Muratov Kumarbek Kalybekovich (License No. 4063 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address: Turatali market, Karasuu, Osh oblast; 

19. PE Turkmenova Kulnara Nogoevna (License No. 4064 dated June 5, 2009 for conducting cash foreign exchange transactions). Registration number of exchange office: 2271. Legal address: container No.7/1, jeans passage, Northern bus stop, Trade Center Dordoi, Bishkek; 

20. PE Tekespaeva Nuriya Baiyshovna (License No. 4065 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address: Zodiak Casino, 97, Sovetskaya Str., Cholpon-Ata, Issyk-Kul oblast; 

21. PE Kenjetaev Anarbai Toktobaevich (License No. 4066 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address: Trade House Koktom, Sarygulova Str., Talas, Talas oblast;  

22. PE Sulaimanov Nurdin Tunguchbaevich (License No. 4067 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address:17, Sarygulova Str., Talas, Talas oblast;  

23. PE Turgunbaev Mavlanbek (License No. 4068 dated June 5, 2009 for conducting cash foreign exchange transactions). Legal address: container 8004422, passage 0, Turatali market, Karasuu, Osh oblast; 

The National Bank of the Kyrgyz Republic revoked certificates/licenses from the following Non-banking financial institutions : 

1. License No.322 dated May 31, 2007 has been revoked from the Additional Responsibility Society pawn office “Emirlan-Kredit” from June 5, 2009 on the basis of the decision of the participant, dated June 5, 2009. Legal address: central market, Jalalabat, Jalalabat oblast.  

Inter-bank payments 

ь As of June 5 2009, the shareholders of CJSC “Interbank processing center” include 16 commercial banks and OJSC “Kyrgyztelecom”. 16 commercial banks are connected to the Single Interbank Processing Center. 53 480 Elcart cards were issued, 433 terminals and 133 automated teller machines are functioning. 356 terminals are installed in branches and savings departments of commercial banks in Bishkek and regional centers, 78 terminals in trade-service enterprises. 

The list of cash issuance centers, automated teller machines and trade-service enterprises, service the national cards Elcard is provided on the site of the National Bank of the Kyrgyz Republic (www.nbkr.kg) in the section “Payment system/Single Interbank Processing Center”.