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ь On May 26, 2010, the Board of the National Bank of the Kyrgyz Republic considered the report on monetary-credit policy for the 1st quarter of 2010. 

In the course of presentation of the report on monetary-credit policy, it was noted that in the 1st quarter of 2010 the main factor of inflation pressure growth was increase in rates for electric energy, hot water and heating since January 2010. As per results of the reporting quarter, increment of consumer price index constituted 4.8 percent, whereas during the corresponding period of 2009 it was 0.4 percent. On an annualized basis inflation constituted 4.0 percent in the reporting period, whereas in the corresponding period of the past year inflation rate constituted 13.6 percent. 

Due to maintenance of inflation risks, the National Bank of the Kyrgyz Republic kept volumes of the NBKR notes emission at the optimum level during the reporting period. Volume of NBKR noted in circulation remained equal to 1 billion soms and as of the end of March it constituted 986.1 million soms. Discount rate of the National Bank of the Kyrgyz Republic during the month varied in the range from 0.7 to 1.2 percent and as of the end of March it constituted 0.9 percent.  

Also it was noted that in the 1st quarter of 2010, in the economy of the republic there was a considerable increase in economic development growth up to 16.4 percent, which was mainly provided by the effect of “low base” in comparison with the relevant period of the past year. Similarly, in external sector there were positive tendencies, including decrease in deficit of trade balance and increase in private transfers inflow as a result of favorable external business environment.  

Evaluation of influence of the budget-tax policy, performed by employees of the National Bank of the Kyrgyz Republic, testifies that the determining factors for deviation of qualitative indices of the monetary-credit policy within the reporting period from earlier approved program were transactions of the governmental management sector. 

Special attention in report was paid to consequences of political events, occurred in the republic at the beginning of April and having considerable influence on conditions and character of the monetary-credit policy performance. Unstable situation provided outflow of deposits from the banking system, which affected decrease in liquidity of commercial banks. To maintain liquidity in the banking system, the Committee on monetary-credit regulation decided to reduce volumes of NBKR notes emission, As a result, volume of NBKR notes in circulation decreased from 986.1 to 234.4 million soms. In May, Board of the National Bank of the Kyrgyz Republic decided to decrease the size of obligatory reserves from 9.5 to 8.0 percent since May 31, as a measure for provision of commercial banks liquidity.  

Also due to latest changes in the tariff policy, the issue, related to inflation rate forecast in the current year, was discussed. Results of the evaluation, performed by the National Bank of the Kyrgyz Republic, showed that re-consideration of the tariff policy in April towards reduction cannot decrease inflation pressure in 2010, which will continue due to introduction of the customs duty for oil and oil products by Russia in April 2010.  

Members of the NBKR Board exchanged opinions about results of the monetary-credit policy for the reporting period and considerable changes in conditions for performance of the monetary-credit policy at present time; they also discussed dynamics of basic macro-economic indices in the reporting period including the issues, related to possible consequences and influence of recent political events on economic situation in the republic in the current year. Thus, at present there is a considerable threat for economic growth decrease, whereas GDP increment in 2010 may constitute about 2.0 percent (in accordance with one of evaluations). 

Also in the course of discussion, the Board members expressed anxiety about considerable decrease in internal demand; the Board noted that in the current year there may be reduction of real incomes of physical and legal entities, which may negatively affect of financial-and-credit institutions. Thus, it will be efficient for financial-and-credit institutions to re-consider their credit policies towards decrease of interest rates in order to prevent worsening of the credit portfolio state. The Board noted that in current conditions, financial status of the banking sector will be one of the key factors, determining trends of the monetary-credit policy. 

In the course of discussions, the opinion was stated that content of the mid-term economic program of the Kyrgyz Republic Government will probably reflect strategy of some political party, which will win in parliamentary election this year. However, it is necessary to accept urgent measures on maintenance and support of the economy.  

Also, it was stated that unbalanced state budget for the year of 2010 and increase in cost for internal debt servicing will have a considerable influence on performance of the monetary-credit policy in the current year. 

As per results of the arrange discussion, the NBKR Board approved the report on monetary-credit policy for the 1st quarter of the current year. 

 

ь National Bank of the Kyrgyz Republic informs that in accordance with the acting legislation of the Kyrgyz Republic and regulatory acts of the National Bank of the Kyrgyz Republic, the Board of the National Bank of the Kyrgyz Republic accepted the decision of termination of Provisional Management regime in the OJSC “AsiaUniversalBank” and on introduction of preservation regime from 6 P.M., June 4, 2010, for provision of maintenance of the banks assets for the purpose of protection of interests of depositors and creditors.  

Usubaliev Erik Djandyralievich was appointed as an establishmentarian of the OJSC “AsiaUniversalBank”. His duties include performance on measures on prevention of worsening of the banks financial state, provision of maintenance of the banks assets and documents, performance of the required measures on recovery of banks solvency at availability of real possibilities and intents of the banks participants to improve financial state of the bank. Thus, future activity of the bank will be managed by the establishmentarian and strictly comply with acting legislation of the Kyrgyz Republic. More detailed information may be obtained from the establishmentarian of the OJSC “AsiaUniversalBank”: tel. 31-31-31. 

 

ь National Bank of the Kyrgyz Republic informs that on May 31, 2010, resolution of the Committee on monetary-credit regulation of the National Bank of the Kyrgyz Republic left the basic rate for crediting purposes of the LLC “Specialized Fund for Banks Refinancing” unchanged at the level of 7.0 percent for June 2010.  

 

ь National Bank of the Kyrgyz Republic informs that resolution of the Supervision Committee of the National Bank of the Kyrgyz Republic No.15/8, dated June 1, 2010, approved and accepted a new edition of “Methodological instructions for filling of the periodic regulative report by a micro-credit company/ micro-credit agency” and “Methodological instructions for filling of the periodic regulative report by a micro-finance company”.  

The above-mentioned normative acts of the National Bank of the Kyrgyz Republic are provided on the official web-site of the National Bank of the Kyrgyz Republic. 

 

ь The National Bank of the Kyrgyz Republic informs exchange offices that the draft Provision “On minimum requirements for arrangement of internal control in exchange offices of the Kyrgyz Republic for prevention of financing of terrorism (extremism) and legalization of income, received by illegal ways” is provided on the official site of the National Bank of the Kyrgyz Republic in the section “Normative acts of the National Bank of the Kyrgyz Republic/Projects for discussion”. The department of non-banking institutions supervision asks to provide comments and proposals on this project to the following e-mail address: aatyshova@nbkr.kg

 

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 MCC “JABA and N” (certificate on accounting registration No. 292, dated May 31, 2010 for micro crediting of physical and legal entities). Legal address: 113, Lenin Str., Naryn, Naryn oblast; 

2. LLC MCC “Arkesh” (certificate on accounting registration No. 293, dated June 2, 2010 for micro crediting of physical and legal entities). Legal address: 116, Abdumomunov Str., Bishkek; 

3. LLC MCC “Nasiyat Bulak” (certificate on accounting registration No. 294, dated June 2, 2010 for micro crediting of physical and legal entities). Legal address: 1, Kyzylkiiskaya Str., Nookat village, Nookat rayon, Osh oblast; 

4. PE Mutalipov Dilshat Raimjonovich (License No. 4400, dated May 31, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2531. Legal address: 182, Abdrahmanova Str., Bishkek, Registration number of additional exchange office: 2532. Legal address: 98, Chui Avenu, Bishkek; 

5. PE Kudin Valerii Petrovich (License No. 4401, dated May 31, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2533. Legal address: 29-47, Beishenaliev Str., Bishkek; 

6. PE Karimov Toktorbai Turgunbaevich (License No. 4402, dated June 1, 2010 for conducting cash foreign exchange transactions). Legal address: central market, Uzgen city, Osh oblast (orienting point: rice market); 

7. PE Abdulhamedov Nematjon Muhammadjanovich (License No. 4403, dated June 1, 2010 for conducting cash foreign exchange transactions). Legal address: central market, Uzgen city, Osh oblast (orienting point: cafй “Oidin”); 

8. PE Abdulhamedov Muhtarjon Muhammadjanovich (License No. 4404, dated June 1, 2010 for conducting cash foreign exchange transactions). Legal address: central market, Uzgen city, Osh oblast (orienting point: rice market); 

9. PE Abdulhamidov Abdusalam Tashpulatovich (License No. 4405, dated June 1, 2010 for conducting cash foreign exchange transactions). Legal address: central market, Uzgen city, Osh oblast; 

10. PE Miryusupov Mirolim Mirsobirovich (License No. 4406, dated June 1, 2010 for conducting cash foreign exchange transactions). Legal address: central market, Uzgen city, Osh oblast (orienting point: restaurant “Kara-Shoro”); 

11. PE LLC “Askaaly” (License No. 4407, dated June 4, 2010 for conducting cash foreign exchange transactions).Legal address: 10, Lenin Str., 10-quarter, Jalalabat, Jalalabat oblast (orienting point: former cotton plant); 

12. PE Yakubov Unus Yusupovich (License No. 4408, dated June 4, 2010 for conducting cash foreign exchange transactions).Legal address: central market, Jalalabat, Jalalabat oblast (orienting point: atelier “Maryam”); 

 

The License No.436 of the Credit Union “EMA”, dated July 18, 2004, has been revoked from June 1, 2010, for breach of legislation of the Kyrgyz Republic and normative-legal acts and requirements of the National Bank of the Kyrgyz Republic. Legal address: 121, Ahunbaev Str., Bishkek. 

 

 

Inter-bank payments 

 

Indices of Inter-bank payment systems (IPS) 

  

Total IPS 

including 

Clearing system 

Gross system 

KGS mln 

items 

KGS mln 

items 

KGS mln 

items 

Indices from the period of May 31,2010 June 05, 2010 (reporting period) 

Absolute value for a week  

9 376 991 004,1 

25 831 

1 172 351 448,2 

23 358 

8 204 639 555,9 

2 473 

Share of IPS payments (%) 

100,0 

100,0 

12,5 

90,4 

87,5 

9,6 

including (%): 

 

 

 

 

 

 

Net positions of Common Interbank Processing Center 

0,2 

1,3 

1,9 

1,4 

0,0 

0,0 

Outgoing to the Central Treasurer's Office 

19,2 

16,0 

19,1 

17,5 

19,2 

2,3 

Incoming from the Central Treasurer's Office 

18,5 

20,2 

11,9 

22,0 

19,4 

3,6 

Outgoing to the Social Fund 

0,6 

4,0 

4,6 

4,5 

0,0 

0,0 

Incoming from the Social Fund 

0,7 

9,5 

5,8 

10,5 

0,0 

0,0 

Average weekly indices for the previous month 

Absolute Value 

7 123 904 788,2 

22 639 

982 722 970,0 

20 602 

6 141 181 818,2 

2 037 

Indexes deviations of the reporting period from the weekly average indexes of the previous month  

Absolute Value 

2 253 086 215,9 

3 192 

189 628 478,2 

2 756 

2 063 457 737,7 

436 

31,6 

14,1 

19,3 

13,4 

33,6 

21,4 

 

 

Indices of “Elcart” system* 

 

As of 

May 28, 2010 

June 04, 2010 

Number of cards in circulation (exclusive of the re-issued cards) 

94 894 

95 269 

Number of pos-terminals: 

 

- in banks  

- in trade centers 

Number of terminals: 

Master of payments 

 

499 

474 

25 

 

35 

 

500 

449 

51 

 

29 

Number of automated teller machines 

134 

135 

 

* According to the CJSC “Inter-bank processing center”, at present all 22 commercial banks are connected to the Single Inter-Bank Processing Center, among them 18 commercial banks are direct participants of the national payment system “Elcart”