Representatives of the National Bank and the Asian Development Bank discussed the issues of bilateral cooperation 

Deputy Chairmen of the National Bank of the Kyrgyz Republic Mr. Nurbek Jenish and Mrs. Lada Orozbaeva met with the head of the delegation of the Asian Development Bank, a specialist in financial sector in the Department for Central and Eastern Asia - Priyanka Sud. 

During the meeting, the parties discussed the current issues of cooperation, among which a special attention was given to the development of the micro-finance sector, Islamic principles of financing and payment systems in terms of introducing mobile financial services. 

Following the meeting, an agreement was reached on the provision of assistance by ADB in educating and advance training of the specialists of the National Bank of the Kyrgyz Republic on the risk-based supervision of IMF and issues of combating financing of terrorism and money laundering. 

On the situation of consumer loans by commercial banks 

The National Bank has not imposed restrictions to commercial banks on providing consumer loans in the national currency. Banks continue to provide lending services in the local and foreign currency taking into account the solvency of borrowers and availability of funding base. 

Commercial banks continue to provide lending services to physical and legal persons in accordance with its internal policies based on the availability of funding base and also assessment of the borrowers’ solvency. In this regard, the most important criterion is the solvency of a borrower, that is, his ability to fully and timely fulfill his obligations before the lender, since commercial banks, in turn, have a responsibility before investors and shall ensure security of their funds. 

In the period from January 29 to February 5, according to the reports of banks, the increase in loans amounted to 510.3 million soms, of which 114.0 million soms were provided as loans in the national currency and 395.4 million soms in foreign currency. 

By the end of 2014 the credit portfolio of commercial banks amounted to 78.7 million soms, having increased by 45.95 percent in 2014. 

It should be noted that in the beginning of the year there has been a slight decline in demand for loans, while the current situation on lending in the banking sector appears traditional. This is due to the structure of the economy of Kyrgyzstan, the major part of which is occupied by agriculture, trade and construction ─ industries in which, as a rule, the largest business activity is observed in the second and third quarters of the year. 

A discussion was held in the National Bank of the Kyrgyz Republic concerning the remote banking development in the Kyrgyz Republic 

A meeting was held in the National Bank of the Kyrgyz Republic between the consultant of the European Bank for Reconstruction and Development (EBRD) Mr. Alaa Abbassi and representatives of the NBKR, state institutions and business structures. 

Representatives of the State Financial Intelligence Service under the Government of KR, the State Service for Combating Economic Crimes under the Government of KR, the Ministry of Transport and Communications of KR, the State Agency of Communications under the Government of KR, the Association of Payment Systems Operators and communications operators of KR, as well as specialists of the National Bank of KR took part in the event. 

The meeting held discussions on the possibilities and advantages of remote banking, the problems arising in the course of its implementation and operation, as well as the further development perspectives of such services in the country. 

The EBRD's consultant Mr. Alaa Abbassi stated in his speech that there are objective reasons for the fact that a large percentage of the population in Kyrgyzstan does not have access to the financial services. Among the main factors, he named the long distances and the low density of the population, which in turn does not allow banks to open branches in remote locations. Another reason for the limited access to financial services is the high costs that the banks face when opening divisions. Also important is the problem of the low level of financial literacy among citizens of the country, which also leads to distrust of banks. In addition, the EBRD's consultant suggested that the products provided on the market of financial services today, perhaps, are not suitable for all the segments of the population. 

Mr. Alaa Abbassi explained in detail what is "remote banking" and told the ways to solve existing problems. 

"In the age of rapid development of information and mobile technology it is possible to increase the level of financial comprehensiveness in Kyrgyzstan, and thereby provide access to financial services to all the segments of the population," said the consultant. 

In addition, there were mentioned concrete examples of the international practice on the implementation and use of the "banking from a distance".  

"There are both good and bad examples of the introduction of remote banking in the international arena, from which good lessons can be drawn. It is necessary to take into consideration specifics of the economic development of countries, their existing needs. Not everything that works in one country will be working in another," Mr. Alaa Abbassi underlined. 

According to the consultant’s words, in order to introduce and develop the remote service, it is necessary to have the relevant legislation and oversight to protect the public, service providers, and to secure integration of the financial services in the market.  

"I believe that the National Bank has already done a great job. It is exciting that there is an open dialogue with all the parties involved in order to ensure a favorable environment for the further development of these services in Kyrgyzstan," the consultant added. 

At conclusion the participants were able to ask all the questions of interest from the EBRD’s consultant, discuss the relevance and importance of such systems, as well as the prospects for the development of remote banking and other relevant issues. 

Specialists of the National Bank held off-site lectures in cities of Kara-Balta and Talas as part of the campaign on the improvement of the financial literacy among the population 

The National Bank of the Kyrgyz Republic continues its series of visiting lectures as part of the campaign on the improvement of the financial literacy among the population. This time, the specialists of the NBKR visited the secondary school-gymnasium No.10 and technical-economic college in Kara-Balta, professional lyceum No.90 in Talas, and also met with representatives of the local self-governing authorities, small and medium-size businesses, the agricultural sector of Talas. These events brought together more than 150 people. 

The training was conducted in the interactive format. The lecturers - the officers of the leading departments of the National Bank held a number of presentations on the relevant financial topics in the Kyrgyz and Russian languages. In his statement, the chief lawyer of the NBKR department on the consumer’s rights in the banking and microfinance services Mr. Mirlan Maitpasov spoke about the need for knowledge in the field of finance and personal budget planning. "Financial literacy allows a person to make sound, informed decisions and to avoid mistakes," he said. 

The leading specialist of the expert department Mr. Emil Kurmanaliev shared with the information regarding the national currency’s series, the protective elements of ‘som’, the rules of exchange for the worn and damaged currency notes. The expert also pointed out the importance and need for the development and education among the Kyrgyz citizens on the culture of delicate handling of money. 

The chief inspector of the department of external oversight of banks Mr. Tynchtyk Tenizbayev held a presentation on the topic of banking services, by telling in detail about the ways of accumulation and saving money, the types of deposits and loans, the basic rules of the loans’ registration and payment. 

The specialist of the NBKR department of analysis and development of the payment systems Mr. Maksat Dushenbiyev shared on the modern payment instruments, the benefits and advantages of the cashless settlement system, and the national payment card Elcart. The participants actively asked questions on the topics that mattered to them, shared their insights on the lecturers’ presentations and noted the need for knowledge in the field of economics and finance. 

According to Ms. Adila Arabayeva, a 10th grade - pupil at the school-gymnasium No. 10 in Kara-Balta, most of the schoolchildren especially appreciated the way in which complex data was conveyed to them. "I really liked the lecture. The specialists of the National Bank not only provided the completed presentation, but also described in detail about each of the topics, answered our questions. I am confident that the knowledge received today on planning income and expenditures, loan arrangements and signing loan agreements will be useful in the future," she said. 

"The level of financial literacy among the population of our country leaves much to be desired. Therefore, conducting such lectures, where experts speak in detail about the banking products and services, management of the family budget, is very important. This will help our students enrich their knowledge acquired within schools and colleges, grow and develop, open their own business," said Mrs. Dinara Shaminalieva, the head of the accounting and management department of the technical-economic college in Kara-Balta. 

In her turn, a college junior student Ms. Vasilisa Ruhina noted that she learned a lot of useful information during the lecture. "For example, it is only now that I learned that young people under the age of 18 can be given loans. In my opinion, if taking a responsible approach and assessment of our capabilities, this is a good opportunity for the youth. Some can arrange a loan and use the money for education, others can open their own business," she said. 

"The benefits and necessity of such events are clear. I learned a lot of useful information. Specifically, the lecturers told us about plastic cards, deposits, loans, borrower's rights. In particular, that it is important not to take hasty decisions while arranging a loan. In case if a customer of a financial institution has changed his mind after signing the documents and have not yet received the money in cash, he can refuse from the previously taken commitments at the last moment. Thus, before making a decision, it is necessary (as in the famous proverb) to measure seven times and cut once," said Ms. Kerimai Baizhigitova, a sophomore of the professional lyceum No. 90 in Talas. 

Along with students and schoolchildren, the entrepreneurs and farmers of Talas stressed the importance of holding the lectures to enhance the level of financial literacy among the population and asked to arrange the follow-up lectures. According to a private entrepreneur, the owner of a cafe Mr. Dokturbek Abakirov, the NBKR specialists gave good recommendations and answered all his questions. "Today most of the village population take loans and invest them in the livestock and crop farming sectors or manage private business. Often, due to the lack of knowledge of their rights and nuances of arranging a loan, many of them fail. Although a few people came today, we need knowledge, concrete advices of experts. It is necessary to continue holding the lectures on the relevant financial issues that will help in enhancing the level of financial literacy among citizens and addressing the problems related to loans," he concluded. 

The Deputy Chairman of the National Bank of KR Mrs. Lada Orozbaeva met with representatives of the World Bank mission 

The Deputy Chairman of the National Bank of KR Mrs. Lada Orozbaeva met with representatives of the World Bank mission headed by the manager and financial economist Mr. Dzhevdet Dzhadash Unal. 

The final meeting held discussions of the issues related to the development project of the financial sector; and the results of the mission’s work were released. 

The parties discussed the situation of the credit register and the development of the borrowers’ data system, issues of consumer rights protection of banking and microfinance services and the financial literacy among the population, the legal framework of the Islamic finance principles and introduction of the risk-based oversight. 

To conclude the meeting, the parties discussed the issues of further cooperation. Mrs. Lada Orozbaeva thanked the colleagues from the World Bank for their assistance and expressed hope that the National Bank and the World Bank will continue their close cooperation. 

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

1. "Avangard KB" LLC (license No.5208 dated February 11, 2015 for carrying out foreign exchange operations in cash. Registration number of the exchange office No.3206. Legal address: 24 Kozhomberdiev Street, Kara Balta city, Chui oblast.  

Certificates/licenses of the following non-financial credit institutions and exchange offices were annulled/revoked: 

1. Certificate of accounting registration of MCA "Saty Aman" LLC No.315 dated September 15, 2010 for carrying out micro-crediting of physical and legal persons is annulled. Legal address: 295 "A" Berdike Baatyr Street, Talas city, Talas oblast.  

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