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On July 11, 2012, the meeting of the Board of the National Bank of the Kyrgyz Republic addressed the following issues and made appropriate decisions. 

·   On the draft of the Regulation “On the publication of the National Bank of the Kyrgyz Republic “The Report on the stability of the financial sector of the Kyrgyz Republic.” 

·   On changes and amendments to some regulations of the National Bank of the Kyrgyz Republic regulating the activities of MFIs; 

·   On making amendments and additions to the Regulation “On the direct banking supervision;” 

·   On amendments to the Regulation on the Package Clearing System of small retail and regular payments in the Kyrgyz Republic; 

·   On amendments to the List of key documents produced in the activities of commercial banks and financial institutions licensed by the National Bank of the Kyrgyz Republic, with an indication of a term of storage approved by the resolution of the Board of the National Bank of the Kyrgyz Republic No. 22/9 dated August 27, 2004.  

 

 

The National Bank of the Kyrgyz Republic: Requirements of MFI clients to reduce interest rates on commercial loans and mortgages to 10% per annum cannot be fulfilled in a market economy. 

 

Interest rates on loans formed to date are caused by high demand for lending resources (the loan portfolio of banks in 2011 increased by 18% or by 4,831.0 million KGS, the loan portfolio of NBFIs increased by 45% or 4,550.4 million KGS), inflation rate, presence of political risk due to low credit rating of the Kyrgyz Republic, as well as by high level of risks on loan products offered by microfinance institutions. 

Given these conditions, the artificial limitation of the size of interest rates in the microfinance sector will lead to withdrawal of a large number of MFIs from the market. Reduction of lending will affect the activity of entrepreneurs who use credit products of MFIs that will be forced to borrow from informal lenders, including private lenders, whose services are much more expensive. 

In addition, the use of non-market regulating mechanisms will be a negative signal to foreign investors who invest their resources in the development of the microfinance sector of the Kyrgyz Republic. 

In this regard, the National Bank believes that the level of interest rates should be determined not under the yoke of government control, but through market-based instruments, where the main factor in the decision-making is the level of demand and supply. 

A significant reduction in interest rates in Kyrgyzstan is possible only due to macroeconomic stability and investment or long-term cheap loans. 

 

 

Licenses/certificates are issued to the following NBFIs and foreign exchange offices: 

 

1. Bai-Kut LLC (the license No. 5002 as of 09/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: Central Market, no number, central gate, Nurgazyev st., Batken, Batken region. 

2. Private Entrepreneur Olga Ivanovna Putilina (the license No. 5003 as of 10/07/2012 for conducting exchange operations with foreign currency in cash), registration No. 3019. Registered address: 93 Kiyevskaya st., Bishkek. 

3. Private Entrepreneur Kazimjan Ganijanov (the license No. 5004 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: Site 1, Central Market, Nookat, Osh region. 

4. Private Entrepreneur Ravshanbek Anvarjanovich Akhmedov (the license No. 5005 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: Site 7, Central Market, Nookat, Osh region. 

5. Private Entrepreneur Olimjon Eminjanovich Sidikov (the license No. 5006 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: Site 2, Central Market, Nookat, Osh region.  

6. Private Entrepreneur Makhamadvali Khabibullayevich Akhunjanov (the license No. 5007 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: 8 S. Alimbayev st., Nookat, Osh region.  

7. Private Entrepreneur Ravshankon Ibragimovich Djorobayev (the license No. 5008 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: City Market (Nooruz Cafй area), Nookat, Osh region. 

8. Private Entrepreneur Khairullo Eminjonovich Pratov (the license No. 5009 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: City Market, stand No. 4, Nookat, Osh region. 

9. Private Entrepreneur Madaminjon Surojidinovich Khajikurbanov (the license No. 5010 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: City Market, stand No. 6, Nookat, Osh region. 

10. Private Entrepreneur Oktamjon Mamatgaziyevich Mominov (the license No. 5011 as of 12/07/2012 for conducting exchange operations with foreign currency in cash). Registered address: 7 S. Alimbayev st., Nookat, Osh region. 

11. Private Entrepreneur Gulbarchyn Sharshenbekovna Toktogulova (the license No. 5012 as of 13/07/2012 for conducting exchange operations with foreign currency in cash), registration No. 3020. Registered address: 165-1 Moskovskaya st., Bishkek. 

12. Sheriktesh Finance MCC Ltd. (the certificate of registration No. 463 as of 09/07/2012 for microcredit for individuals and legal entities). Registered address: 41 Molodaya Gvardiya blvd., Bishkek. 

13. Aktandai MCC Ltd. (the certificate of registration No. 464 as of 11/07/2012 for microcredit for individuals and legal entities). Registered address: 57 Torgoyev st., Karakol, Issyk-Kul region. 

 

Certificates of the following NBFIs are revoked/annulled: 

 

1. The license of the Bardin Ata Credit Union No. 58 as of 27/08/1998 for operations to raise cash from its members through the purchase of a savings share by them, providing loans to CU members subject to maturity, repayment and interest payment, has been annulled on 06/07/2012 according to the decision of the minutes No. 3 of the General Meeting of Members of the CU as of 29/06/2012 on the self-liquidation. Registered address: 83 Lenin st., Kazarman, Toguztoroussky District, Jalal-Abad region. 

2. The certificate of registration of the Yrysky Credit Microcredit Agency No. 200 as of 25/01/2012 for microcredit for individuals and legal entities has been annulled on 10/07/2012 according to the resolution of the Founder as of 09/07/2012 on the self-liquidation and the statement of the MCA as of 10/07/2012. Registered address: 3 Gagarin st., apt. 8, Kyzyl-Suu, Jeti-Oguzsky District, Issyk-Kul region. 

 

 

 

 

 

Interbank Payments 

Indicators of interbank payment systems (IPS) 

 

 

 

Total IPS 

Including 

Clearing System 

Gross System 

amount, 

KGS 

q-ty, 

pc. 

amount, 

KGS 

q-ty, 

pc. 

amount, 

KGS 

q-ty, 

pc. 

Indicators for the period July 9-13, 2012 (reporting period) 

Absolute Value 

12 604 039 104,46 

44 171 

1 443 951 136,42 

40 970 

11 160 087 968,04 

3 201 

Share in IPS payments (%) 

100,0 

100,0 

11,5 

92,8 

88,5 

7,2 

including 

(%) : 

  

  

  

  

  

  

Net positions of the SIPC 

0,1 

1,8 

1,2 

2,0 

0,0 

0,0 

Outgoing to the Central Treasury 

11,2 

5,8 

13,7 

6,1 

10,8 

1,4 

Incoming to the Central Treasury 

19,9 

39,2 

18,8 

42,1 

20,1 

2,2 

Outgoing to the Social Fund 

0,03 

0,7 

0,3 

0,7 

0,0 

0,0 

Incoming to the Social Fund 

1,1 

8,8 

10,0 

9,5 

0,0 

0,0 

Average weekly indicators for the last month 

Absolute Value 

12 954 114 043,75 

43 538 

1 351 491 325,91 

40 632 

11 602 622 717,85 

2 906 

 

Deviation of indicators for the reporting period from the average weekly indicators for the last month 

Absolute Value 

-350 074 939,29 

633 

92 459 810,51 

338 

-442 534 749,81 

295 

-2,7 

1,5 

6,8 

0,8 

-3,8 

10,1 

 

 

Elcart System Indicators. 

 

 

As of 

06.07.2012 

13.07.2012 

The total number of issued cards (excluding re-issued) 

135 044 

135 551 

The number of POS terminals: 

- in banks 

- in stores 

 

726 

465 

261 

 

728 

467 

261 

The number of ATMs 

214 

216