ь Since July, there has been growth of EUR exchange rate against KGS. Thus, since the beginning of July the official exchange rate of EUR increased by 2 soms 40 tiyins, from 56.8557 soms to 59.2519 per EUR or by 4.2 percent.  

Exchange rate of EUR against KGS in the domestic market of the Kyrgyz Republic is formed as cross-rate through USD. Therefore, dynamics of EUR exchange rate depends on EUR tendencies in the world markets as well as on USD exchange rate against KGS in the Kyrgyz Republic. 

From July 1 to July 16, due to considerable exceed of demand over supply, the USD exchange rate against KGS increased from 46.4004 to 46.9617 per 1 USD, i.e. by 1.2 percent. From July 1 to July 16 of the current year, in the world markets EUR strengthened its positions against USD from 1.2517 to 1.2930 USD/EUR or by 3.3 percent against implemented governmental programs and accepted measures on stabilization of the Eurozone economy. These factors provided growth of EUR against KGS in the Kyrgyz Republic.  

ь As of June 30, 2010, there were 22 operating commercial banks and 242 branches of commercial banks in the Kyrgyz Republic. 

As a result of events of 7-8 April, 2010, the following factors prevented stable operation of the banking system of the republic:  

· Reduction of the network of automated teller machines and terminals for servicing of banking cards as well as payment terminals, assigned for acceptance of regular payments from the population; 

· Difficulties with performance of trans-frontier (international) payments with correspondent banks; 

· Difficulties with performance of money transfers; 

· Difficulties in arrangement of payments and mutual settlements between legal entities; 

· Banks’ losses, caused by stealing of monetary funds from broken automated teller machines and payment terminals. 

Since April 8, 2010, in a number of commercial banks on the basis of resolutions of the prosecutor's office, the National Bank of the Kyrgyz Republic introduced Provisional Management. On the basis of operative solution of problematic issues of banks, related to provisional management and in accordance with requirements of the Kyrgyz Republic legislation, at present four of these banks still work in the regime of provisional management and preservation regime is introduced in one bank.  

As of June 30, 2010, total assets of commercial banks, where preservation and provisional management regimes were introduced, constituted 8.56 billion soms or 16.5 percent from the overall volume of the banking system assets. 

As of June 30, 2010, total deposit base of commercial banks, where preservation and provisional management regimes were introduced, constituted 7.54 billion soms or 23.0 percent from the overall volume of the banking system deposit base, including:  

· Deposits of enterprises and population constituted 5.57 billion soms or 22.6 percent out of the total volume of deposits of enterprises and population of the banking system; 

· Deposits of banks and other financial-credit institutions constituted 0.36 billion soms or 9.7 percent out of the total volume of deposits of banks and other financial-credit institutions of the banking system 

· Deposits of governmental agencies constituted 1.61 billion soms or 15.9 percent out of the total volume of deposits of governmental agencies of the banking system; 

As of June 30, 2010, the volume of credits, issued to clients (amount outstanding on credits), in the considered group of banks constituted 4.75 billion soms or 18.5 percent out of the total volume of credits, issued to clients of the banking system.  

As of June 30, 2010, in credit portfolio of commercial banks, where preservation and provisional management regimes were introduced, the share of classified credits constituted 13.7 percent or 3.52 billion soms (as of the beginning of 2010 – 8.2 percent or 2.06 billion soms).  

As of June 30, 2010, the aggregate paid-in charter capital of commercial banks, where preservation and provisional management regimes were introduced, constituted 2.4 billion soms or 27.4 percent out of the total volume of the banking system capital.  

As of June 30, 2010, foreign capital in the paid-in charter capital of the considered group of banks constituted 1.78 billion soms or 45.2 percent out of the total volume of foreign capital in the paid-in charter capital of commercial banks.  

As of June 30, 2010, commercial banks, where preservation and provisional management regimes were introduced, received losses in the amount of 4.03 billion soms, as a result the aggregate balance capital of this group of banks constituted 0.1 billion soms or 0.9 percent from the overall volume of the banking system capital. 

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 “Sezim Group” (certificate on accounting registration No. 301, dated July 14, 2010 for micro crediting of physical and legal entities). Legal address: 41, Slavyanskaya Str., Bishkek; 

2. LLC MCC “Finance Alliance” (certificate on accounting registration No. 302, dated July 14, 2010 for micro crediting of physical and legal entities). Legal address: 48/88, Masaliev Str., Osh, Osh oblast; 

3. LLC “Colibri” (License No. 4448, dated July 16, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2563. Legal address: 246, Kievskaya Str., Bishkek;  

4. PE Sadykov Abdurasul Bahapovich (License No. 4447, dated July 16, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2562. Legal address: 38, Manas Avenue, Bishkek; 

5. PE Chentsov Oleg Viktorovich (License No. 4446, dated July 16, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2561. Legal address: 124, Kievskaya Str., Bishkek; 

6. PE Lyanko Aleksandr Aleksandrovich (License No. 4445, dated July 12, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2560. Legal address: 162-15, Chui Avenue, Bishkek; 

7. PE Ashyrkulova Chynara Azimkanovna (License No. 4444, dated July 12, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2559. Legal address: 1, Chimkentskaya Str., Bishkek (Western bus station); 

PE Anarbaev Shavkar Tashtemirovich (License No. 4443, dated July 12, 2010 for conducting cash foreign exchange transactions). Legal address: central market, Jalal-Abad, Jalal-Abad oblast (“Mariyam” atelier); 

The License No. 217 of the Credit Union “Meder”, dated December 11, 2000, has been revoked from July 12, 2010, on the basis of minutes of general meeting of participants, dated May 27, 2010; application on self-liquidation, dated July 8, 2010. Legal address: 23, Lomonosov Str., Talas, Talas oblast. 

The License No. 415 of the Credit Union “Besh-Tash”, dated July 9, 2002, has been revoked from July 16, 2010, on the basis of minutes of general meeting of participants, dated July 2, 2010; application on self-liquidation, dated July 16, 2010. Legal address: Mangyt village, Aravan rayon, Osh oblast. 

Inter-bank payments 

Indices of “Elcart” system*  

*According to CJSC “Interbank processing center”, 16 commercial banks out of 22 operating commercial banks are connected to the Single Interbank Processing Center.