The NBKR complaint with reference to the incident which occurred at the plenary session held by the Jogorku Kenesh of the Kyrgyz Republic on June 6, 2013.
On June 06, 2013, in the course of discussion of the draft Law "On restrictions imposed on usurious activity carried out in the Kyrgyz Republic" O. Tekebaev, Ata Meken fraction leader, expressed public insults addressed to the National Bank and Z. L. Chokoev, the NBKR Deputy Chairman, at the plenary session held by the Jogorku Kenesh of the Kyrgyz Republic, as a result Z.L. Chokoev had to leave the parliament’s session hall.
Taking into account the aforementioned incident the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank) considers it necessary to emphasize the following:
Insulting words of O. Tekebaev addressed to the NBKR Deputy Chairman Z. Chokoev regarding his personal qualities and professional skills are not reasonable. Zair Lenarovich Chokoev is an acknowledged and experienced specialist in the financial sector. He represents official position of the National Bank which activity is transparent and publicly disclosed.
Deputy O. Ch. Tekebaev in his speech at the session held by the Kyrgyz Republic Jogorku Kenesh being guided by populist motives and skillfully manipulating controversial issues, such as high interest rates for micro-crediting services and unrecoverable loans presented unreliable data and made ungrounded statements which are likely to result in destabilization in the credit market and, in general, will adversely affect economic indicators of the country.
· The National Bank considers the comments of O. Tekebaev as a deliberate refusal from conducting a constructive dialogue and an attempt of bringing pressure on regulatory body, as well as deliberate public misleading in decisions making related to draft law on usurious activity.
· Parliament representatives whose competence covers law-making activity, first of all shall demonstrate compliance with the current legislation of the Kyrgyz Republic to the public and be an example of the human dignity ideal and civil devotion to the native country. In fact, O. Tekebaev does not deserve the status of people’s representative.
The National Bank of the Kyrgyz Republic considers that Jogorku Kenesh of the Kyrgyz Republic should carry out discussions of the draft laws as well as other issues constructively rather than move on to interpersonal abuse. O. Tekebaev assaulted honor and dignity of Z. L. Chokoev and abused business reputation of the National bank. Under such circumstances the National Bank reserves the right to apply to the Rules Committee of the Jogorku Kenesh and deputies’ ethics.
Reference
Official position of the NBKR regarding the draft Law "On restrictions imposed on usurious activity carried out in the Kyrgyz Republic" developed by O. Tekebaev.
Financial institutions licensed and regulated by the National Bank should not be covered by the jurisdiction of the Law "On restrictions imposed on usurious activity carried out in the Kyrgyz Republic" in compliance with the banking legislation, including the Law "On micro-financing organizations."
It is necessary to take into account all risks including major risks, such as country risk and default risk, and the necessity of being hedged in considering the level of interest rates in the micro-financing sector. It should be noted that micro-crediting is generally fulfilled without collateral. In reviewing limitations ("ceiling") imposed on interest rates it is necessary to consider international experience in imposing such limitations (limitations are imposed on interest rates approximately in 40 countries, among them Nicaragua, Bolivia, China, Paraguay, Algeria, Libya, Morocco, Syria, Tunisia, the states of South and West Africa, etc.), it resulted in decrease of the non-banking financial institutions activity in the rural and remote regions, as well as increase in the average volume of micro-credits. Besides, it resulted in decrease of business activity among population and distribution of illegal and shadow financial schemes and operations in the non-financial institutions. In this case competition is the most effective way of the interest rates decrease.
Involvement of the financial institutions, licensed and regulated by the National Bank, in the jurisdiction of this law can cause negative circumstances such as loss of the investors’ (internal and external) confidence, separate micro-financing organizations and credit unions folding up their activity, decrease in the volume of crediting and deterioration of favorable climate for internal and external investors having been establishing for years in this sphere. The effect of decrease in the volume of crediting with the current demand for credits will consist in decreasing of the population access to credit resources, increase of interest rates, complication of crediting mechanisms, and increase in the number of "shadow" money-lenders being beyond the control. It means that the effect of the law passed in the suggested wording will be directly opposite to the declared target, i.e. protection of the borrowers’ rights; moreover, the average weighted interest rate is likely to increase to the level defined in the draft law as "usurious".
Circumstances of the introduction of the draft Law "On restrictions imposed on usurious activity carried out in the Kyrgyz Republic."
This draft law will restrict the rights of financial institutions and destroy the principle of independence in the process of carrying out entrepreneurial activity in the territory of the Kyrgyz Republic. Such strict requirements will cause decrease in the volume of investments and complicate the access of many citizens to financial services. Besides, the draft law is inconsistent with many regulatory legal acts of the Kyrgyz Republic, including the Civil Code, in the sphere of crediting activity regulation in fact depriving financial institutions of the right to protect their interests and their activity. All aforementioned facts can cause a number of negative circumstances. They may include transition to the shadow economy a considerable number of non-banking financial institutions. There is a situation when it will be impossible to regulate these financial institutions.
Establishing state regulation ("ceiling") of interest rates will restrict access to micro-financing assets for a large number of borrowers, as such restrictions complicate or make impossible the process of own expenses covering on the part of micro-financing organizations, thereby resulting in non-transparent operation of micro-financing organizations by means of hiding deficient interest yield in additional payments and fees. Besides, micro-financing organizations will operate only in large cities and regional centers providing credits only to large client and fold up their activity in the rural and other remote regions due to high costs. Limitations imposed on interest rates will deprive clients of the micro-financing organizations of access to micro-financing services particularly in some separate regions and they will have to use the services of non-formal borrowers (for example to private money-lenders), whose services are more expensive.
The National Bank of the Kyrgyz Republic awarded special prizes to the journalists of printed and Internet-media within the framework of the republican contest "Resources of the country - human potential" organized by the Institute of development policy.
Silver collection coins of the series "Great Silk Way" and certificates of the National Bank of the Kyrgyz Republic in the nomination "Financial issues best covered in media" were awarded to:
· Galina Luneva, newspaper "Slovo Kyrgyzstana" ("The Word of Kyrgyzstan"), Bishkek city;
· Maksim Tsoi, news agency "Vecherniy Bishkek" ("Evening Bishkek"), Bishkek city;
· Margarita Lazutkina, newspapers "Dlia Vas" ("For You") and "Chuiskie izvestiya" ("The news of Cui region"), Bishkek city;
· Elena Meshkova, news web portal "Polit.KG", Bishkek city;
· Myrzakat Tynaliev, newspaper "Kyrgyz Tuusu", Bishkek city.
The ceremony of the prizewinners awarding was held of June 1. 40 persons participated in this solemn event: public servants, representatives of business communities, media organizations, civil society, as well as editors and journalists of capital and regional mass media.
Contest was conducted within the framework of the Institute of development policy project "Mass media - budget transparency mechanism" with the support of the Soros Foundation. The National Bank of the Kyrgyz Republic was the partner of this event having awarded its own prizes to some separate journalists who wrote the best articles about banking and micro-financing sector.
Reference:
Collection silver coin of the series "Great Silk Way" with the value of 10 soms was adopted by the National Bank of the Kyrgyz Republic on December 20, 2011 under the International Programme of EurAsEC countries "On production and sale of collection coins of precious metals".
On the front side of the coin there are silhouettes of famous architectural and cultural monuments included in the list of cultural World Heritage by UNESCO. Gilded by pure gold a stylized route of the Great Silk Road is situated at the foreground of the front side, at the background there is a map of Eurasia. On the left side of the coin there is the alloy and the weight of the coin (Ag 925/31.10 g); below there is a value of the coin (10 soms). On the reverse side of the coin there is the state emblem of the Kyrgyz Republic, a caravan going to the mountains, reflecting like a mirage on the mirror surface of the coin and the year of issue (2011).
Each silver coin is placed in an acrylic capsule and packed in a separate case with an attached certificate.
"The Great Silk Way" coin was the prizewinner for its design and used technologies in the nomination "The most historically valuable coin" in the contest "Coins-2013" held by the publishing house "Krause Publications" (USA).
National contest "Resources of the country - human potential" is held by the Institute of development policy every year. Under the conditions of the contest the journalists who published their articles within particular period can participate in it. Among the themes of contest articles were such directions as republican and local budgets, transparency in budgetary funds expenditure, honesty and budgetary expenditures, transparency of extractive industries and energy production, banking sector and micro-financing, etc.
340 articles of 43 authors from all regions of Kyrgyzstan were sent to the contest held in 2013. Independent contest committee consisting of 5 persons having reviewed each article could assess them by categories. Materials for assessment were submitted to the members of the committee without authors’ names being specified, they were decoded after contest completion.
The prizewinners were selected in four nominations: air media, printed media in the Russian language, printed media in the Kyrgyz language, and Internet-mass media.
Additional exchange office №2859 dd. December 23, 2011 of Individual Entrepreneur M.S. Maletin for conducting exchange rate operations with foreign currency in cash has self-liquidated on March 20, 2013. Legal Address: 164/13, Moskovskaya str., Bishkek.
Interbank payments
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Inter-bank payment system indicators (IPS) |
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|
|
Total IPS |
including |
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|
Clearing system |
Gross system |
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|
amount, KGS |
quantity, units |
amount, KGS |
quantity, units |
amount, KGS |
quantity, units |
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Indicators for the period from June 03 to June 07, 2013 (accounting period) |
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|
Absolute value |
15 503 975 715.89 |
47 512 |
1 685 766 108.54 |
44 379 |
13 818 209 607.35 |
3 133 |
|
Share in IPS payments (%) |
100.0 |
100.0 |
10.9 |
93.4 |
89.1 |
6.6 |
|
including (%): |
|
|
|
|
|
|
|
Net positions of Integrated Inter-bank Processing Center |
0.1 |
1.8 |
1.3 |
1.9 |
0.0 |
0.0 |
|
Outgoing Central Treasury |
22.0 |
9.5 |
18.4 |
10.0 |
22.5 |
1.6 |
|
Incoming Central Treasury |
10.9 |
34.2 |
13.5 |
36.4 |
10.6 |
3.1 |
|
Outgoing Social Fund |
1.0 |
8.4 |
9.3 |
9.0 |
0.0 |
0.0 |
|
Incoming Social Fund |
0.5 |
6.0 |
4.7 |
6.4 |
0.0 |
0.0 |
|
Average-weekly indicators for the previous month |
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|
Absolute value |
15 563 714 453.39 |
49 844 |
1 576 576 754.55 |
46 651 |
13 987 137 698.84 |
3 192 |
|
Deviation of accounting period indicators from average-weekly indicators for the previous month |
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|
Absolute value |
-59 738 737.50 |
-2 332 |
109 189 353.99 |
-2 272 |
-168 928 091.49 |
-59 |
|
% |
-0.4 |
-4.7 |
6.9 |
-4.9 |
-1.2 |
-1.9 |
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Elcard system indicators |
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As of |
31.05.2013 |
07.06.2013 |
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Total number of issued cards (excluding reissued) |
202 396 |
202 820 |
|
Number of pos-terminals: - in banks - in sale outlets |
1046 785 261 |
1046 785 261 |
|
Number of ATMs |
274 |
274 |