The National Bank of the Kyrgyz Republic made a decision to keep the discount rate unchanged at 11 percent 

On March 30, 2015, the Board of the National Bank of the Kyrgyz Republic made a decision to keep the discount rate unchanged at 11 percent. The analysis of the economic situation demonstrates that, on the one hand, there is a slowdown in the consumer price index; on the other hand, the economic development of the country still remains under the influence of external factors. As of mid-March, the annual inflation rate decreased to 8.6 percent from 10.5 percent as of the end of 2014. The high rates of economic growth in January-February 2015 (9.5%) were mainly due to the increase in production of the enterprises that carry out development of the “Kumtor” mine. The real growth of GDP, excluding “Kumtor”, amounted to 3.8 percent. The economic situation in the countries - main trading partners continues to have an impact on the slowdown in the economic growth of our country via the channels of foreign trade and remittances; an increased pressure in the foreign exchange market remains.  

The National Bank of the Kyrgyz Republic will continue to monitor the situation in the economy of the country, and consistent with the statutory mandate, will take appropriate measures of monetary policy aimed at achieving and maintaining in the medium-term the inflation rate at the level 5 -7 percent, defined by the Main directions of monetary policy of the National Bank of the Kyrgyz Republic for the medium term.  

The next meeting of the Board of the National Bank of the Kyrgyz Republic, which will consider the issue of the size of the discount rate, is scheduled for April 27, 2015. 

The National Bank of the Kyrgyz Republic did not impose restrictions on the  

sale of foreign currency for commercial banks 

The National Bank did not impose restrictions on the sale of foreign currency cash and did not recommend using such restrictions to commercial banks. 

According to the legislation of the Kyrgyz Republic, commercial banks independently establish their own conditions for exchange operations in foreign currency: purchase / sale rates, volumes. Accordingly, circumstances upon which restrictions are imposed by the regulator are not provided in the Law of the Kyrgyz Republic "On operations in foreign currency". 

  The National Bank constantly monitors the situation both in the domestic and foreign financial markets. If necessary, the National Bank of the Kyrgyz Republic will take appropriate measures. 

The National Bank of the Kyrgyz Republic: the situation in the foreign exchange market of the Kyrgyz Republic is under control 

On March 26, 2015, a press conference was held at the Information Agency "Kabar" with the participation of the Deputy Governor of the National Bank of the Kyrgyz Republic Mr. Nurbek Zhenish and the Chief of the Economic Management of NBKR Mr. Seyilbek Urustemov. The theme of the meeting of the management of the National Bank with the journalists was the situation in the foreign exchange market of the country. 

The Deputy Governor of the National Bank of the Kyrgyz Republic Mr. Nurbek Zhenish urged the Kyrgyz citizens not to create an artificial excessive demand for foreign (US) currency. 

"I urge everyone not to panic. The National Bank is analyzing the condition of the foreign exchange market and is ready to carry out interventions as many times as it is necessary to pay off the deficit. We are keeping the situation under control", - said Mr. N. Zhenish. 

According to Mr. Nurbek Zhenish, since the beginning of 2015 the National Bank has carried out nine interventions in the amount of 153.3 million dollars. On March 25, the National Bank sold approximately 11.4 million dollars, on March 24 - 8.4 million dollars. The foreign currency and gold reserves of the country currently amount to 1.76 billion dollars. While answering the question about the reasons for the weakening of the national currency, the Deputy Governor of the National Bank informed the journalists that since the beginning of the year till March 25, 2015 the rate of the US dollar against som increased by 6.68%, from 58.8956 to 62.8291 soms per one US dollar. The growth of the US currency is caused by the continuing high demand for it due to the seasonal factor, on the one hand, and a decline in the supply of foreign currency on the foreign exchange market, on the other hand. The demand was mainly due to the need to pay for contracts on import, including petroleum, oil and lubricants, electricity and other consumer goods. Besides, the exchange rates have been influenced by external shocks, among which are: the change of the policy by the Federal Reserve System of the USA, which has formed a global trend of strengthening of the US dollar in the countries - trading partners of Kyrgyzstan; sanctions imposed by the West and the US against Russia; a significant decrease in the prices for oil; the current situation in Ukraine; market expectations with regard to the increase of the discount rate by the Federal Reserve System of the USA; the launch of quantitative easing by the European Central Bank. 

According to the Deputy Governor of the National Bank, since the beginning of the year till March 25, 2015 the US dollar has strengthened against the Euro by 8.9%, the British pound - by 2.9%, the Australian dollar - by 2.5%, the Belarusian ruble – by 22.4%, the Moldovan leu - by 19.8%, the Tajik somoni – by 7.9%, the Turkmen manat - by 22.8%, the Turkish lira - by 8.4%, the Armenian dram – by 0.04%, the Azerbaijani manat – by 33.7% and has weakened against the Swiss franc - by 4.3%, the Japanese yen – by 0.7%.  

As the Deputy Governor of the National Bank has informed, in the banking sector to date there are 307 million dollars available, including 75 million dollars in cash. "Shortly before, a meeting was held with the heads of commercial banks. We discussed the current monetary situation and the ways to solve the problem," - he said.  

After the speech by Mr. N. Zhenish, participants of the press conference were given the opportunity to ask questions to representatives of the National Bank. In particular, the journalists addressed such traditional topics, as the measures taken by the National Bank to stabilize the foreign exchange market, restrictions on the issuance by commercial banks of loans in foreign currency to the population, the draft of the law, which provides for closing exchange offices and others.  

The National Bank of the Kyrgyz Republic reminds 

The National Bank of the Kyrgyz Republic reminds that in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic from December 24, 2014 №58/9 legal entities that fall under the definition of an "Operator of the payment system" and a "Payment institution", operating at the time of entry into force of the present Resolution, shall provide documents in order to receive a license for carrying out activities as an operator of payment systems and a payment institution within two months from the date of the Resolution’s entry into force (09.02.2015). After the expiry of the given period, carrying out activities without a license will be considered as a violation of the legislation of the Kyrgyz Republic. 

According to Article 15 of the Law "On the licensing system in the Kyrgyz Republic", the following kinds of activities are subject to licensing: 

· Para. 27, provision of services of accepting and making payments and settlements for goods and services, which are not the result of own activities, for the benefit of third parties by means of payment systems based on information technologies and electronic means and methods of payments; 

· Para. 28, provision of services of accepting, processing and delivery of financial information (processing, clearing) on payments and settlements of third parties to participants of the payment system, the given processing, clearing center. 

Requirements for obtaining a license are defined in the Regulation "On licensing of the activities of operators of payment systems and payment institutions", which was approved by the Resolution of the Board № 58/9 from December 24, 2014 and published on the official website under "Normative acts of the NBKR/Payment System". 

Information on remittances 

In accordance with the Rules for remittances in the territory of the Kyrgyz Republic (amendments in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic No.34/10 from July 31, 2014), on March 30, 2015, an operator of the remittance system "Xpress Money" – “Xpress Money Services Limited” was registered in the list of operators that provide remittance services in the territory of the Kyrgyz Republic under the registration number 1033300315. 

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

1. “Danikulova” LLC (license № 5230 from 31.03.2015 for carrying out foreign exchange operations in cash). Registration number of the exchange office № 3227. Legal address: 86/1 Kulieva Street, Bishkek city.  

2. “ASEM and co” LLC (license № 5231 from 03.04.2015 for carrying out foreign exchange operations in cash). Registration number of the exchange office № 3228. Legal address: 2 Den Syaopin Street, flat 12, Bishkek city. 

3. “Gamma Company” LLC (license № 5232 from 03.04.2015) for carrying out foreign exchange operations in cash). Registration number of the exchange office № 3229. Legal address: 16 Mir Avenue, Bishkek city.  

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

1. Certificate of MCA “BJ” LLC № 350 from 25.03.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/2. Legal address: 27-417 Molodaya Gvardiya Avenue, Bishkek city; 

2. Certificate of MCA “ZA-credit” LLC № 403 from 20.10.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/3. Legal address: 185 Sovetskaya Street, Chui village, Chui region, Chui oblast; 

3. Certificate of MCA “RAHAT” LLC № 447 from 10.04.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/4. Legal address: 31 Mashinostroitelnaya Street (previous name), Shopokov, Sokuluk region, Chui oblast;  

4. Certificate of MCA “Beimaral” LLC № 467 from 27.08.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/5. Legal address: microdistrict Dzhal-29, 9-12, Bishkek city; 

5. Certificate of MCA “BERC CAPITAL” LLC № 249 from 10.11.2009 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/6. Legal address: microdistrict Dzhal-23, house no.13, flat 54, Bishkek city; 

6. Certificate of MCA “GlavCredit” LLC № 427 from 26.01.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/7. Legal address: 7 Razzakova Street, Bishkek city; 

7. Certificate of MCA “Araket-credit” LLC № 384 from 12.07.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/8. Legal address: 3 Vostochnaya Street, Sovetskoe village, Chui region, Chui oblast; 

8. Certificate of MCA “BRATCO” LLC № 137 from 03.06.2008 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/9. Legal address: 57 Kalyk Akieva Street, flat 1-2, Bishkek city; 

9. Certificate of MCA “Vostok-Finance” LLC № 344 from 22.02.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/10. Legal address: 16 Kollektivnaya Street, Bishkek city; 

10. Certificate of MCA “SHELBI” LLC № 429 from 30.01.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/11. Legal address: microdistrict 11, 22-63, Bishkek city; 

11. Certificate of “Islamic MCA “Islam microfinance” LLC № 468 from 05.09.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/12. Legal address: 14 Ahunbaev Street, Bishkek city;  

12. Certificate of MCA “DATIK” LLC № 19 from 17.05.2004 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/13. Legal address: 13 Timiryazeva Street, flat 81, Bishkek city;  

13. Certificate of MCA “Bereke-Bailyk” LLC № 150 from 08.08.2008 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/14. Legal address: residential district “Ak-Bosogo”, 6 Chui Street, 19, Bishkek city; 

14. Certificate of MCA “SOMOV” LLC № 219 from 30.06.2009 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/15. Legal address: 126 Chui Avenue, flat 2, Bishkek city; 

15. Certificate of MCA “Most Business Capital” LLC № 163 from 16.10.2008 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/16. Legal address: microdistrict Dzhal-23, 33-3, Bishkek city; 

16. Certificate of MCA “ElKut” LLC № 398 from 29.09.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/17. Legal address: 55 Simferopolskiy Lane, Bishkek city; 

17. Certificate of MCA “Kut Tolsun” LLC № 83 from 20.07.2007 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/18. Legal address: administration, building “Zima Letto”, Orto-Sai market, microdistrict 7, Bishkek city; 

18. Certificate of MCA “Credit Service” LLC № 226 from 09.07.2009 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/19. Legal address: 210 "а" Imanalieva Street, Ortosai village, Bishkek city; 

19. Certificate of MCA “ALMIR CREDIT” LLC № 332 from 30.12.2010 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/20. Legal address: microdistrict 5, 71-43, Bishkek city; 

20. Certificate of MCA “AMANAT-KAZYNA” LLC in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/21. Legal address: 243 Budennogo Street, Bishkek city; 

21. Certificate of MCA “BEKBOL” LLC № 97 from 03.10.2007 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/22. Legal address: 7 Pushkina Street, flat 7, Kara Balta, Chui oblast; 

22. Certificate of MCA “ALFA FINANCE CAPITAL” LLC № 338 from 02.02.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/23. Legal address: 106-703 Usenbaev Street, Bishkek city; 

23. Certificate of MCA “Capital” LLC № 288 from 07.05.2010 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/24. Legal address: container no.1409/18, passage no.14, “Dordoi”-Muras-Sport market, Bishkek city; 

24. Certificate of MCA “KUTUCHA” LLC № 108 from 06.02.2008 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/25. Legal address: 230 Chui Avenue, floor 8 (Business Centre “Bereket”), Bishkek city; 

25. Certificate of MCA “CentreCredit” LLC № 368 from 17.05.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/26. Legal address: microdistrict 6, 38/1-20, Bishkek city; 

26. Certificate of MCA “Soyuz-Credit” LLC № 451 from 23.04.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/27. Legal address: 93-104 Toktogul Street, Bishkek city; 

27. Certificate of MCA “Cooperative credit” LLC № 250 from 12.11.2009 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/28. Legal address: 88/1 Turusbekov Street, Bishkek city; 

28. Certificate of MCA “Progress” LLC № 390 from 28.07.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/29. Legal address: cab.8, floor 7, 230 Chui Avenue, Bishkek city; 

29. Certificate of MCA “JOHN & CO” LLC № 204 from 08.04.2009 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/30. Legal address: 63/1 Eletskiy Lane, Bishkek city; 

30. Certificate of MCA “KESHIN” LLC № 280 from 17.03.2010 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/31. Legal address: microdistrict 10, house no.34, Bishkek; 

31. Certificate of MCA «Akniet» LLC № 434 from 14.02.2012 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/32. Legal address: 230 Chui Avenue, floor 8, Bishkek city; 

32. Certificate of MCA “Gavan-Credit” LLC № 56 from 05.09.2006 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/33. Legal address: 107 Kievskaya Street, room 315, Bishkek; 

33. Certificate of MCA “Ak Peyil-Berekel” LLC № 48 from 28.03.2006 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/34. Legal address: 22/2 Manas Street, Talas, Talas oblast; 

34. Certificate of MCA “Kyrgyzayiltrust” LLC № 1 from 04.04.2003 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/35. Legal address: 48 S. Sadykov Street, Batken, Batken oblast;  

35. Certificate of MCA “Bai-Tugol” LLC № 335 from 26.01.2011 in accordance with the Resolution of the Oversight Committee of the National Bank of the Kyrgyz Republic from March 26, 2015 № 10/36. Legal address: Chatyrkul Street (previous name), Atbashy village, Atbashy region, Naryn oblast (13 Orokov Street, Kazarman village, Toguz-Torouskiy region, Jalal-Abad Oblast); 

36. License of “Uni-Trans Service” LLC № 8 № 5114 from 27.11.2013 for carrying out foreign exchange operations in cash is annulled. Legal address: A. Navoi Street (previous name), (orienting point – “Kelechek” market), Osh; 

37. License of an Individual Entrepreneur Ms. Yulia Aleksandrovna Buhta № 4924 from 24.04.2012 for carrying out foreign exchange operations in cash is annulled. Legal address: 1-23 Baiytik Baatyr Street, Bishkek city; 

38. License of FC “De-jure” CU № 316 from 03.12.2001 is annulled. Legal address: 78 Lenin Street, Naryn, Naryn oblast; 

39. License of an Individual Entrepreneur Ms. Gulnara Orozbaevna Asanova № 5000 from 05.07.2012 for carrying out foreign exchange operations in cash is revoked. Legal address: 27/1 Gorkogo Street, Shopping Centre “Vefa”, Bishkek city; 

40. License of an Individual Entrepreneur Mr. Kolbai uulu Salamat № 4976 from 08.06.2012 for carrying out foreign exchange operations in cash is revoked. Legal address: 144 Abdrahmanov Street, Bishkek city.