ь Session of the Board of the National Bank of the Kyrgyz Republic was arranged on March 31, 2010. In the course of the session the following issues were considered and corresponding resolutions were accepted: 

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­ On introduction of changes and amendments to the Provision “On measures of influence, applied to banks and individual financial-credit institutions, licensed by the National Bank of the Kyrgyz Republic” (No.9/2); 

­ On introduction of changes and amendments to the Resolution of the NBKR Board No.25/8 “On approval of rules for regulation of activity of the LLC “Specialized Fund of Banks Refinancing” (Spetsializirovannyi Fond Refinansirovaniya Bankov)”, dated March 27, 2009 (No.9/3); 

­ On annual financial reporting of the LLC “Specialized Fund of Banks Refinancing” (Spetsializirovannyi Fond Refinansirovaniya Bankov) (No.9/5); 

­ On approval of the consolidated financial reporting of the National Bank of the Kyrgyz Republic for the year of 2009 (No.9/7). 

ь National Bank of the Kyrgyz Republic informs that on March 30, 2010, the Committee of the Monetary-and-Credit Regulation of the National Bank of the Kyrgyz Republic determined the basic rate for crediting by the LLC “Specialized Fund of Banks Refinancing” (Spetzializirovannyi Fond Refinansirovaniya Bankov) for April 2010 at the level of 8.0 percent.  

ь Information reference about introduction of changes and amendments to the Civil Code of the Kyrgyz Republic. 

Necessity in development of the draft law “On introduction of changes and amendments to the Civil Code of the Kyrgyz Republic”, in particular to the Article 776 “Settlements”, is provided by the necessity in acceptance of further measures for organization of efficient monetary circulation in the country’s economy. Money in the economy is always in circulation between three subjects, including physical entities, economic agents and governmental agencies. Transparency of monetary circulation is of the criteria for evaluation of the investment attractiveness of the country for both local and international investors.  

Starting from 2002, the National Bank in cooperation with the Kyrgyz Republic Government performed activities on implementation of the National Program for increase in the share of non-cash payments. Within this period, the national integrated payment system was created and successfully developed. This system enables to perform payments in the country’s economy in non-cash form. Corresponding resolutions of the Kyrgyz Republic Government were accepted and measures on issuance of salaries to governmental officials through accounts of commercial banks as well as the measures on closing of internal cash offices of service businesses and acceptance of payments from the population in non-cash form through accounts and cash offices of commercial banks and post offices were accepted. 

Up to the present moment, measures related to the spheres “state and population” and “state and business” as well as “population and public utility companies”, i.e. to such relations where administrative measures may be applied. Proposed changes and amendments to the Civil Code affect relations between “state and business”, because it this sphere where is a large volume of payments, performed in cash forms. Such situation provides inefficiency of monetary circulation in the country. At this stage it is necessary to increase transparency of monetary circulation. Acceptance of the proposed changes into the Civil Code will have positive effects on activity of businessmen with regard to quality improvement of financial discipline, transparency of monetary flows and working assets accounting. 

At present, the National Bank of the Kyrgyz Republic continues joint work with representatives of the National Alliance of business associations on additional analysis of the necessity in acceptance of legislative norms, aimed at increase in efficiency of settlements for the purpose of improvement of forecasting and regulation of monetary circulation.  

Such reforms were performed or are performed at this stage in all CIS countries. In the scope of macro-economy, increase in the share of non-cash monetary circulation will provide positive multiple effect and solution of wide range of problems – from improvement of country’s indices in various international ratings to improvement of the Kyrgyz Republic population living standards.  

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. Limited Liability Company MCC " MFRK " (Account Registration Certificate No. 285 dated April 2, 2010, for micro crediting individuals and legal entities). Legal address: 52, Chanachev Str., Naryn, Naryn oblast; 

2. Limited Liability Company MCC "Bereke Express" (Account Registration Certificate No. 284 dated March 30, 2010, for micro crediting individuals and legal entities). Legal address: 2, Dostuk Str., residential community “Kolmo”, Bishkek; 

3. Limited Liability Company MCC "EVI Kredit" (Account Registration Certificate No. 283 dated March 30, 2010, for micro crediting individuals and legal entities). Legal address: 23-12, Gorkogo Str., Bishkek; 

4. Limited Liability Company MCC " I.B.S " (Account Registration Certificate No. 282 dated March 29, 2010, for micro crediting individuals and legal entities). Legal address: 218, Manas Str., Kyzyl Suu village, Jeti Oguz rayon, Issyk-Kul oblast; 

5. PE Kurmanbaev Guljigit Avtandilovich (License No 4325, dated April 2, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2478. Legal address: exchange office No.21, central passage, Trade Center Dordoi, Bishkek; 

6. PE Ismanova Guljan Asankanovna (License No 4324, dated April 1, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2477. Legal address: 109, Ahunbaev Str., Bishkek; 

7. PE Turumbekova Nazira Mederbekovna (License No 4323, dated April 2, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2476. Legal address: pavilion No.58, Chimkent bus-stop, Trade Center Dordoi, Bishkek; 

8. PE Sultanova Nurzat Omonovna (License No 4323, dated April 2, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2475. Legal address: pavilion No.10K, Chimkent bus-stop, Trade Center Dordoi, Bishkek; 

9. PE Rasulov Valeh Ahmed-Ogly (License No 4321, dated March 30, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2474. Legal address: Alma-Atinskaya Str., Leninskoe village, Chui oblast (traffic police post “Akjol”); 

10. PE Imanaliev Azamat Toktogulovich (License No 4320, dated March 30, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2473. Legal address: 150, Abdrahmanov Str., Bishkek; 

11. PE Kurbanova Saadat (License No 4319, dated March 29, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2472. Legal address: 1st floor, Manas airport, Bishkek (western side); 

12. PE Ibraimov Nurdin Nakaevich (License No 4318, dated March 29, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2471. Legal address: 38-12, Manas Avenue, Bishkek; 

13. PE Jumagulova Gulnara Egemazarovna (License No 4317, dated March 29, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2470. Legal address: 139, Gorkogo Str., Tokmok, Chui oblast; 

14. PE Musabekov Abdivait Abdykerimovich (License No 4316, dated March 29, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2469. Legal address: 146, Abdrahmanov Str., Bishkek. 

License No. 465, dated August 23, 2004 has been revoked from the Credit Union “Alas Ayar” from March 30, 2010 on the basis of minutes of the general meeting of participants, dated March 6, 2010 and application on self-liquidating, dated March 30, 2010. Legal address: 100, Orozova Str., Korumdu village, Issyk-Kul rayon, Issyk-Kul oblast. 

ь About facts of counterfeiting in 2009 and means of banknotes protection.  

163 counterfeit banknotes were recalled from circulation in the year of 2009. This figure is 50 banknotes more than in 2008. Law enforcement officials performed measures on arrest of counterfeiters with a large lot of counterfeit 500-som banknotes in the amount to 392 pieces in Bishkek and Karakol. Individuals, participating in production, storage and distribution of counterfeit banknotes are convicted for various periods from one to seven years of imprisonment. 

With regard to the counterfeit banknotes, detected by law enforcement agencies, including 409 banknotes or 74 percent from the total number of counterfeit banknotes, which were accounted for the banknotes with the nominal value of 5000 soms, and 49 banknotes or 9 percent from the total number of counterfeit banknotes, which were accounted for the banknotes with the nominal value of 1000 soms, and 36 banknotes or 6.5 percent – banknotes with the nominal value of 100 soms. In the 3rd and 4th quarters of 2009, first counterfeit banknotes with the nominal value of 5000 soms were detected. 17 uniform counterfeit banknotes with the nominal value of 5000 soms were recalled from circulation. The largest number of counterfeit banknotes was detected in Bishkek (429), Issyk-Kul oblast (53), Chui oblast (30), Osh oblast (21), Jalalabat oblast (15), Talas oblast (4) and Naryn oblast (3). 

Quality of counterfeit banknotes is rather average. Color of counterfeit banknote in the majority of cases is equal to the color, used in original banknote. For counterfeiters, the process of primary sale is the most important moment, that’s why they try to counterfeit the same characteristics, which are inspected by population: watermark, security thread. In order to differentiate the counterfeit banknote, it is enough to compare it with the original one (which is for sure - authentic). At thorough investigation of the watermark, it is easy to find the difference between counterfeit and original banknote. Original banknote’s watermark is light, whereas when looking against the daylight it becomes dark. In counterfeit banknote, the watermark is always dark. 

It is not efficient to trust availability of only one characteristic. It is necessary to check all three-four known characteristics of banknotes authenticity, for instance: 

· latent image (change of ornament to figures), 

· iridescent line (shiny stripes of the reverse side, visible only when a banknote is turning). 

For the banknote with the nominal value of 5000 soms: 

· Spark® - it is a rectangle with the figure “5000”, positioned in the left side from the portrait. When turning the banknote, the figure changes its color from dark-green to light-green and then to blue. 

· Security thread on the banknotes with the nominal value of 5000 soms, when turning it up and down, changes its color from red to green.  

These and other protection elements may be checked in interactive mode on the official web-site of the National Bank of the Kyrgyz Republic www.nbkr.kg, in the section “National currency/Banknotes”. Protection characteristics and their description may be obtained or printed on the site. 

If you got a doubtful banknote, then it is necessary to bring it to the nearest investigative department of the National Service of Financial Police or to the National Bank of the Kyrgyz Republic, where specialists will perform expertise of the banknote authenticity. There is no point in trying to get rid of a doubtful banknote, because not only production but also distribution of counterfeit banknotes is punished by the law. 

Inter-bank payments 

Indices of “Elcart” system* 

* According to CJSC “Interbank processing center”, 18 commercial banks out to 22 are connected to it.