National Bank congratulates journalists on their professional holiday 

Kyrgyzstan has been celebrating the Day of Information and Press on November 7 for already twenty years.  

National Bank of the Kyrgyz Republic congratulates the domestic media professionals with their professional holiday and is grateful for their diligent work, high professionalism and dedication to their profession. 

In today’s world it is difficult to overestimate the role of the media and its influence on the formation of a world view of citizens. The work of journalists is very responsible and difficult since while covering the events of different scales and possessing one of the most powerful tool of the mankind, the word, it is necessary to be objective and impartial. Perception on the occurring events in Kyrgyzstan, understanding of political, economic and social processes of the public depends on the professionalism of journalists and their civic position. 

Journalists always work on the front lines , sometimes risking their health, sometimes leaving their private life and families behind. Information broadcast through the press, television, radio, the Internet is very important since it shapes the story, creates a picture of not only the present but also the past and often the future. 

National Bank is always open and ready to assist journalists in preparation of materials under the purview of the central bank, whether news reports, analytical articles or educational projects. We are always happy to cooperate with the media and are grateful for the journalists for their interest in financial topics. While making an overall contribution to improving the financial literacy of our country, we will together promote and improve the overall quality of life of citizens. 

National Bank urges citizens to be more careful with the som 

Along with the need to increase financial literacy, today we need to educate citizens on careful treatment with the money. Banknotes are often crumpled, torn, leave remnants of food, are often kept in the pockets instead of a purse, used as notebooks. This will reduce the life cycle of the banknotes and increase public spending for the new production of soms. The press-tour was organized on this and many other issues by the National Bank in order to raise awareness of the media on the tpics related to the national currency. 

Activities have been carried out within several days. During this time, the National Bank met with more than 30 journalists that represent print and electronic media. The staff of the Cash Management Department of the National Bank informed the participants of press tours on how money is updated in Kyrgyzstan, who and how the dilapidated and damaged soms are destroyed and how new notes come into circulation. 

Journalists visited both publicly available as well as closed and specially protected areas of the National Bank, where they have a chance to see the process of receiving, processing, selection and destruction of worn and damaged money. Media representatives visited the cash exchange of worn banknotes and coins to individuals, Central reverse cash and cash conversion, as well as the office where the work with old money is carried out. 

As was noted by Mr. Aidarkulov Shamil, the head of the Cash Management Department of the National Bank, the National Bank of the Kyrgyz Republic deals with the destruction of worn and damaged banknotes of soms in line with the existing legislation. Recycling of the old banknotes takes place 3-4 times a year, when enough money is accumulated for destruction. "The average life span of small denomination bills varies from 1 to 3 years, large denomination banknotes from 3 to 5 years. Around 40 to 45 tons of soms are destroyed per year. Soms shredded into pieces of 6mm on the special equipment are briquetted and sent to the factory for processing that manufactures cardboard"- told Mr. Aidarkulov Shamil to the journalists. 

In addition to the admissions process and the destruction of old banknotes, members of the press tours participated presentations organized by the National Bank on technologies of creating soms. Mr. Emil Kurmanaliev, a leading specialist of the expert unit of Cash Management Department talked about the issuance of 4 series of the national currency, security features of som and features of genuine soms from counterfeit bills. During the presentation Mr. Emil Kurmanaliev presented statistics on counterfeiting cases in Kyrgyzstan for the past 6 years. 

"The level of counterfeiting in the country is reducing with every passing year. For example, if in 2011, 609 counterfeit banknotes of the national currency in the amount of 373.5 thousand soms was revealed, in 2012 - 94 units per 109 000 960 soms, and within 9 months of this year 89 units per 55 000 260 soms was revealed. Currently, the Kyrgyz som among the most protected banknotes in the world. At the same time it should be noted that the liability for counterfeiting has not been canceled. The law severely punishes not only the producers of counterfeit money, but their distributors. In recent years under the Criminal Code of the Kyrgyz Republic "Production, possession or sale of counterfeit money or securities" dozens of people were imprisoned with confiscation of property, - he concluded. 

According to information received by the National Bank of the Kyrgyz Republic from the law firm defending the interests of the Government of the Kyrgyz Republic in international arbitration proceedings on claims to the Kyrgyz Republic concerning the nationalization of OJSC "AsiaUniversalBank" (hereinafter OJSC "AUB"), the International Arbitration (Dublin, Ireland) issued final judgment on October 31, 2013 against Mikhail Nadel and American companies IthacaHoldingInc (hereinafter "Ithaca") and the procedure on their joint lawsuit against the Kyrgyz Republic was discontinued. 

According to the decision, "Ithaca" and Mikhail Nadel were charged for legal costs of the Government in the amount of USD 281 095. 

Michael Nadel and the company "Ithaca" established in 2011, whose shareholders are US citizens Andrew Mirer, Evgeny Pashkevich, Natalia Odvak, Maya Slutsky, Konstantin Goltsev and Leonid Zharkovsky recoursed to the Kyrgyz Republic to international arbitration in April 2012. They demanded compensation of more than USD 400 million for the nationalization of their shares of OJSC "AUB". According to them, Mr. Nadel owned approximately 59 % of shares and shareholders of Ithaca owned more than 10% of shares. 

In July 2012, the Kyrgyz Republic demanded immediate withdrawal of their claims from the claimants in connection with the procedural irregularities related to the approval of joint filing of lawsuits. However, the claimants initially refused, but as a result of the work carried out by the law firm representing the interests of the Government of the Kyrgyz Republic, they withdrew their demands in September 2012. The Kyrgyz Republic has issued to Mr. Nadel and "Ithaca" a counterclaim for reimbursement of legal expenses of the Government of the Kyrgyz Republic. The international arbitration awarded the claimants to enforce USD 281 095 in favor of the Kyrgyz Republic on October 31, 2013. 

Interests of the Kyrgyz Republic in international arbitration on cases of the nationalization of "AUB" is presented by an international law firm Winston & Strawn LLP and Kyrgyz law firm "Consulting on the Rule of Law". Group of lawyers of Winston & Strawn is headed by Mr. Andrey Yakovlev, a partner in the London office of the company. Leading lawyers of "Consulting on the Rule of Law" are Mr. Anwar Askarov and Mr. Ulan Satarov, the partners of the company. 

For reference:  

Michael Nadel is a Russian businessman, who acquired in 1998 along with other investors 100% of shares of "AUB" (at that time a subsidiary of the "International Business Bank" registered on the island of Samoa). From 1998 to 2010, Mr. Nadel was the chairman of the Board of Directors of the bank. In 2010, after the investigation of the activity of "AUB" Mr. Nadel was sentenced by the Kyrgyz court on fraud and money laundering and sentenced to 16 years imprisonment in absentia. 

IthacaHoldingInc is a company established in 2011 in California, USA, and has a registered office in the State of New York, USA. According to official figures, the company’s shareholders are US citizens Andrew Mirer (a former spouse of Ms. Alexandra Catherine, the former member of the Board of Directors of OJSC "AUB"), Evgeny Pashkevich, Natalia Odvak, Maya Slutsky, Konstantin Goltsev and Leonid Zharkovsky. 

Due to the numerous inquiries of citizens to the National Bank on issues related to release of a new 100 -dollar bill by the U.S. Federal Reserve, the National Bank presents the following information: 

On October 8, 2013, the USA Federal Reserve System (FRS) put into circulation the new 100 dollar bill with a new design of 2009 series. This bill is the last that represents a series that begun by the FRS in 2004 with a 20-dollar bill. Until the present time denominations of 50, 20, 10, and 5 US Dollars have been produced. 

According to the FRS, the old-style bills remain legal tender and there is no need to exchange old notes for new ones, as all American banknotes are legal tender, regardless of model year. 

The color of a new banknote is predominantly blue-gray. This bill contains a number of advanced security features, which make it difficult to counterfeit and will allow consumers to easily identify the authenticity of banknotes: 

The 3-D security blue ribbon (Motiontm) – depending on the angle of the bells change to 100 as they move. When you tilt the note back and forth, the bells and 100 move side to side. If you tilt it side to side, they move up and down. The ribbon is woven into the paper, not printed on it. 

Image of the bell in the inkwell – when tilting it the bell changes from copper to green, that creates an effect which makes the bell seem to appear and disappear within the inkwell.  

Color shifting (OVI)-Numeral "100" – depending on the angle of tilt the numeral 100 in the lower right corner of the note shifts from copper to green as in 20 and 50 banknotes.  

Security thread –The thread is imprinted with the letters USA and the numeral 100 in an alternating pattern and is visible along the thread from both sides of the note. The thread glows pink when illuminated by ultraviolet light. 

Raised printing – In the area of Benjamin Franklin’s shoulder on the left side of the note one can feel rough to the touch, a result of the enhanced intaglio printing process used to create the image. Traditional raised printing can be felt throughout the $100 note. 

Gold 100 –There is a large gold numeral 100 on the back side right to the Independence Hall. It helps those with visual impairments distinguish the denomination.  

The new banknote has American symbols of freedom - phrases from the Declaration of Independence and the quill the Founding Fathers used to sign the historic document are found to the right of the portrait. The bell, an American symbol of freedom is one of the attractions of Philadelphia, motherland of B. Franklin.  

More information about the security features of the 100-dollar bill of a new sample is available on the website of the Bureau of Engraving and Printing of U.S. Federal Reserve System at www.newmoney.gov. 

Licenses/certificates were issued to the following non-financial credit institutions and exchange offices: 

"Banknote" LLC was issued a license (License No.5113 as of November 12, 2013 giving the right to conduct exchange in cash foreign currency) under registration No. 3107. Legal address: 150, Abdrahmanov Street, Bishkek, the Kyrgyz Republic.  

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