Tolkunbek Abdygulov was appointed as acting Chairman of the National Bank of the Kyrgyz Republic 

The President of the Kyrgyz Republic Almazbek Atambaev signed a Decree, according to which Abdygulov Tolkunbek Sagynbekovich was appointed as acting Chairman of the National Bank of the Kyrgyz Republic.  

REFERENCE 

ABDYGULOV Tolkunbek Sagynbekovich  

He was born on July 7, 1976 in Issyk-Kul region, Ton region, Bokonbaevo village. 

In 1997 he graduated from the International University of Kyrgyzstan in International Economic Relations. In 1999 - International University of Kyrgyzstan in Banking (Master’s degree); in 2005 - University of Nagoya, Japan, in "Economics of Development" (Master’s degree); in 2007 he graduated from the University of the North Texas, USA, in "Public Management" (Master’s degree).  

WORK EXPERIENCE 

[1997-2000] Economist, Directorate of Investments and Technical Assistance Coordination (DITAC), National Bank  

[2000-2001] Senior economist, Directorate of Investments and Technical Assistance Coordination (DITAC), National Bank  

[2001-2003] Leading economist, Directorate of Investments and Technical Assistance Coordination (DITAC), National Bank  

[2005-2005] Leading economist, Division of Finances, National Bank  

[2005-2006] Chief economist, Division of Projects Implementation, National Bank  

[2006-2006] Director, SF "Information Future"  

[2007-2008] Consultant of Department of Financial Market and the private sector Development of Eastern Europe and Central Asia Department, World Bank  

2008 - present Senior Lecturer, Department of Economics, American University of Central Asia  

[2008 -2009] Expert of Economic sector of Economic and social policy Division of the Office of the President of the Kyrgyz Republic.  

[2009-2010] Head of the Policies and programs of the Central Agency of the Kyrgyz Republic for Development, Investments and Innovation  

[2010 -2010] Acting Secretary of State of the Ministry of Economic Regulation of the Kyrgyz Republic 

12.2010 - present Head of the Department of Economics and Strategic Development of the Office of the Government of the Kyrgyz Republic  

The results of I quarter of 2014 were discussed on the Expert Forum of the National Bank of the Kyrgyz Republic 

The traditional Expert Forum was held in the National Bank of the Kyrgyz Republic, where the macroeconomic development indicators for I quarter of 2014, the results of monetary policy and the key challenges to the economy in 2014 were discussed. The representatives of the National Bank, the experts of the banking sector, international organizations and academia attended the event.  

Head of the Economic Department Seyilbek Urustemov presented a brief economic overview. He informed that in January-March GDP grew by 5.6% in the corresponding period in 2013 - 8.8%. Volume of GDP excluding enterprises on development the field "Kumtor" increased by 4.9% compared with 6.4% in I quarter of last year. Economic growth is caused by the positive dynamics in the construction sector, industry and commerce. There is a decline in remittances in dollar terms that is mainly associated with an increase in the exchange rate of dollar in Russia. He noted that the increase in the nominal volume of remittances in ruble terms remains positive.  

Today the situation in the external sector remains unchanged. Despite of the positive balance of payments, current account deficit continues to grow. According to preliminary data, compared with the figures for the 1st quarter of 2013, the exports decreased by 0.6%, imports - by 1.2%. Question of the trade balance and current operations account requires attention from Government. Topic of development of export-oriented and import-substituting production remains relevant", - he stressed.  

Referring to the foreign exchange market, S. Urustemov informed that since the beginning of the year rate of som to dollar has depreciated by 10.8%. "This was preceded by a double external shock - the situation with the exchange rate of dollar in Russia and the decision of the National Bank of Kazakhstan on nongraded devaluation of tenge. A certain excitement was in the domestic market. The National Bank has taken all necessary measures, conducted an information campaign. Today the situation on the market has stabilized. The National Bank continues to keep abreast of and monitor the situation on the domestic market and the markets of the major trading partners. We will continue to work in accordance with the existing floating exchange rate regime", - he concluded.  

According S. Urustemov’s opinion, at this moment rate of inflation in annual terms is 7.1%. Certainly, devaluation of som will have some effect on prices that may lead to an increase in the inflation rate, but spikes are not expected. This year, the National Bank has been implementing a number of innovations - the transition to a new model of monetary policy, change of the mechanism of determining the discount rate, previously tied to the yield of 28-day Notes. Since February of this year, the size of the interest rate is determined by the Board of the National Bank. On April 28 at the regular meeting it was taken a decision to leave the size of the interest rate at the same level - 6%. Along with the change of the mechanism for determining the discount rate a new tool was introduced - "overnight" deposits. Together with the already existing tool - "overnight" credit, "interest corridor" was created around the discount rate. Its "floor" is the rate on "overnight" deposits which now stands at 1.5%, and "ceiling" - the rate on "overnight" credits, equal to 9%. In the medium term the objective is in starting of work of interest rate transmission channel and in reacting of the interest rates on the market to the change in the discount rate of the National Bank.  

As the main challenges in the domestic economy slowdown in income of private transfers and the persistence of unequal distribution of budgetary operations by the Ministry of Finance were marked.  

During the dialog, the experts discussed issues concerning the stabilization of som’s rate, the measures taken by the National Bank to avoid such shocks, the joining the Customs Union. It was proposed to limit the margin for speculators, as in a number of countries.  

In turn, the Head of the Monetary operations Department Raushan Seytkasymova, answering the questions of experts, said that there are no ready recipes to prevent shocks. "If the experts knew how to predict economic crises, they simply would not have occurred. Then there would be no the Asian crisis of 1997 or the Russian crisis of 1998, nor the global crisis of 2008. From such situations it is necessary to learn a lesson and taking into account it to customize work. Regarding of the proposal (to limit margin) the National Bank sent for public comment changes to some regulations concerning foreign exchange market." 

REFERENCE of the National Bank  

Expert Forums on the topic of monetary policy, the National Bank has traditionally holds every quarter. The main purpose of the activities is in discussion of the preliminary results of monetary policy of the National Bank by the independent experts. The results of work with the Forum’s participants accounted for by the National Bank in the development of monetary policy for the coming period, also they are an important element, aimed at ensuring the transparency of the National Bank’s activity.  

Discussion and explanation of the objectives, content and results of monetary policy is one of the criteria of its effectiveness. In this context, and following the National Sustainable Development Strategy for 2013-2017, it is provided a regular informing of the public about the content and results of the monetary policy, which is aimed at increasing of confidence of public and market participants, and reducing of inflationary expectations. In order to increase participation and involve into discussions the independent experts from the regions of the country, the National Bank 2 times a year holds Expert Forums in the regions.  

On revoke of the certificate of registration of the LLC MCC "Amir Ken"  

In connection with the non-compliance of the legislation of the Kyrgyz Republic, normative-legal acts and requirements of the National Bank, guided by Article 32 of the Law "On the National Bank of the Kyrgyz Republic", Article 28 of the Law "On Microfinance Organizations in the Kyrgyz Republic", the Regulations "On preventive measures and sanctions applied by the National Bank of the Kyrgyz Republic to the microfinance institutions", as well as subparagraph "x" of Paragraph 2.1 of the Regulations "On Supervisory Committee of the National Bank of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank from March 19, 2005 No. 6/2, the Oversight Committee of the National Bank revoked the certificate of registration of the LLC MCC "Amir Ken" from April 28, 2014.  

On April 28, 2014 the Board of the National Bank of the Kyrgyz Republic has decided to leave interest rate unchanged at 6.0 percent.  

Press-release of the meeting of the Board of the National Bank of the Kyrgyz Republic on the discount rate  

In I quarter of this year, the actual level of the CPI was formed above the forecast by 0.4 percentage points amounted to 4.7 percent in annual terms, including the fact of food inflation was higher than estimates of the National Bank by 1.0 percentage points, whereas of the non-food inflation, on the contrary, lower by 0.1 percentage points. The main pressure on inflation from devaluation of som caused by exposure of external shocks, manifested in March 2014: in March inflation was 2.1 percent despite of the fact that the average value in March in previous years did not exceed 0.7 percent. Devaluation of som led to higher prices for some imported goods. The direct contribution of the impact of devaluation of som on inflation was smoothed by the measures of the National Bank. In April, the situation on the currency market has stabilized.  

Economic growth rate in January-March of this year amounted to 5.6 percent (in the same period in 2013 - 8.8 percent), excluding venture on development the deposit "Kumtor" GDP in real terms was 4.9 percent (in the same period in 2013 year - 6.4 percent). Economic growth forecast for the whole 2014 remains within previous estimates of the National Bank.  

It was noted the slowdown of Russia’s economic growth, which has affected the volume of remittances (in dollar terms) into the country. Thus, the net inflow of remittances in dollar terms decreased, but in ruble denomination volume of remittances increased, that generally indicates that there is still demand from households.  

According to preliminary data of the State Tax Service in January-March 2014 revenues amounted to 6.4 billion soms at the forecast of 7.7 billion soms or 84.0 percent of the plan. Compared with the previous year, receipts of taxes and payments increased by 32.2 million soms or 0.5 percent. During January-March 2014 according the State Customs Service customs duties revenues totaled 7.5 billion soms at the forecast in the amount of 7.7 billion soms or 96.9 percent of the plan. In comparison with the same period of 2013 the growth rate was 110.4 percent or it was collected more by 701.6 million soms.  

Thus, taking into account the risks of reduction in external demand, on the one hand, and on the other, an increase of risk of consumer prices growth, the Board of the National Bank has decided not to change interest rate in April, leaving it at 6.00 percent. Nevertheless, the future dynamics of inflation may lead to a revision of the discount rate.  

On the state of cash circulation in the Kyrgyz Republic for quarter I of 2014  

The total amount of money in circulation on April 1, 2014 was 60 409.1 million soms, 3 873.1 million soms of them were in vaults of commercial banks, and the rest - was out the banking system (the total amount of money in circulation compared with the corresponding period of last year increased by 3 709.3 million soms or by 6.5 percent).  

In I quarter of 2014 vaults of commercial banks in the whole country received 202 318.6 million soms, which is more by 46 176.8 million soms or by29.6 percent, than in I quarter of 2013.  

From the vaults of commercial banks in I quarter of 2014 197 641.9 million soms was granted, which is more by 40 653.2 million soms or by 25.9 percent, than in I quarter of 2013.  

The recurrency of the cash in vaults of commercial banks in I quarter of 2014 amounted to 102.4 percent (compared with I quarter of 2013 an increase was 2.9 percentage points).  

Changing of cash recurrency in vaults of commercial banks in I quarter of 2014 in the context of regions is shown in Table 1.  

in percent 

Certificates/licenses of the following non-bank financial institutions have been cancelled/revoked: 

Since April 28, 2014 the certificate of registration of LLC MCC "Besh Kadam" No. 115 dated February 29, 2008 for micro-crediting of physical and legal entities was annulled. Decision No. 2 of the founders of April 17, 2014, on self-liquidation. Legal address: No. 1 Sultanov Street, Jiyde village, Manas District, Talas region. 

Since April 29, 2014 the certificate of registration of LLC MCC "Dem & Co" No. 199 dated March 26, 2009 for micro-crediting of physical and legal entities was annulled. Decision No. 1 of the founder of LLC MCC "Dem & Co" on self-liquidation of the company. Legal address: 50-2 Toktogul Street, Jalal-Abad, Jalal-Abad region.  

Since April 29, 2014 the certificate of registration of LLC MCC "Aer & Company" No. 306 dated August 10, 2010 for micro-crediting of physical and legal entities was annulled. Decision of the founder of LLC MCC "Aer & Company" of April 25, 2014, on self-liquidation of the company. Legal address: without number Nooruz Street (landmark is garage "Alga"), Mirza-Ake village, rural district Mirza-Ake, Uzgen district, Osh region. 

Since May 5, 2014 the certificate of registration of LLC MCC "BARPY-CREDIT" No. 446 dated April 6, 2012 for micro-crediting of physical and legal entities was annulled. Decision No. 1 of the founder of May 2, 2014, on self-liquidation. Legal address: 59 Sarygulov Street (in the building Trade House "Symbat"), Talas, Talas region. 

Since April 29, 2014 the certificate of registration of LLC MCC "Amir Ken" No. 362 dated April 28, 2011 for micro-crediting of physical and legal entities was revoked. Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic No. 13/7 of April 24, 2014. Legal address: app. 51, house 3, Energeticheskaya Street, Kara-Balta, Jaiyl district, Chui region. 

Since April 30, 2014 the certificate of registration of SF MCA "Jolbaybesh" No. 17 dated March 28, 2003 for micro-crediting of physical and legal entities was annulled. Self-liquidation according to the decision of the founder. Legal address: 28 Sart-Ake Street, Ak-Dobo, Zhetioguzsky district, Issyk-Kul region. 

Interbank payments