The Expert Forum was held in Bishkek  

The regular Expert Forum held in Bishkek on August 2, 2013 with participation of the NBKR Management Board, heads of structural subdivisions, and experts from the banking sphere, international organizations, academic circles and business communities was organized by the National Bank of the Kyrgyz Republic.  

The results of the NBKR monetary policy for the 1st quarter of 2013 were on the agenda of the Expert Forum. Comments and recommendations worked out in the course of discussion at the Expert Forum are further taken into account in the monetary policy development.  

The chief of the Economic Department, Seyilbek Urustemov, informed about current economic situation in the country, forecasts, the monetary policy conducted by the NBKR and its trends in the future. According to him, there was increase in GDP by 7.9% in the 1st half of 2013, which was primarily conditioned by recovery of mining works at "Kumtor". With regard to the peculiarities of the monetary policy since the beginning of the current year, he noted that in January-June, the involvement of the National Bank in the domestic interbank foreign exchange market was minimal, the NBKR carried out one currency intervention on sales of US dollars in the amount of USD 14.7 million in April. At the end of 2012, the NBKR introduced the mechanism of credit auctions for the purposes of supporting liquidity and refinancing, the funds within the framework of this mechanism are provided for the period of 3 and 6 months with the possibility of prolongation; the average weighted rate on carried out auctions did not exceed 6 percent, the amount of allocation constituted KGS 337.0 million.  

In the course of his speech it was noted that uncertainty of the situation around "Kumtor" was the main challenge for the domestic economy this year, thereby raising concerns about financing of the state budget deficit, as well as deterioration of the global economy, which is likely to cause slowdown in growth rates of private transfers inflows, extension of the current account deficit due to decline of the external demand.  

At the end of the forum, the majority of the participants recommended that the NBKR should continue pursuing the current monetary policy for restraining monetary component of the inflation, as well as strengthen operations and supervision over application of funds on the mechanism of refinancing the loan.  

The Expert Forum of the National Bank of the Kyrgyz Republic is normally held once a quarter. Its main purpose is development of recommendations by independent experts aimed at ensuring macroeconomic stability in the country, on the basis of discussions of the current economic topics with emphasis on the monetary policy.  

 

 

The National Bank of the Kyrgyz Republic summarized the results of the monetary policy for the 1st half year  

Zair Chokoev, the Deputy Chairman of the National Bank of the Kyrgyz Republic, held a press-conference in Bishkek on August 2, 2013.  

In the course of the press-conference, the NBKR Deputy Chairman informed the journalists about the results of the monetary policy for 6 months. He told that annual inflation value in the period under review formed at the level of 8.1%, at that, prices increased by 0.1% in June 2013. "Moreover, deflation at the rate of 0.2% was recorded in July. The rate of inflation is forecasted at zero level in the current month, August. Regular price rises are expected in autumn," said Z. Chokoev.  

In respect of the monetary indicators for the half year, the Deputy Chairman emphasized increase of the monetary base by 3.8% in the republic and major indicators of the banking system. "During January-June, the loan portfolio of the operating commercial banks reached KGS 46,955.6 billion, having increased by 17.08%. Deposits increased by 13.53% and constituted KGS 57,504.6 billion," he added.  

Having heard the speech of Z. Chokoev, the journalists asked about the situation around troubled banks, reasons for replacement of management in two state banks - OJSC "Aiyl Bank" and OJSC "RSK Bank", violations detected in the last one, as well as measures taken by the NBKR in respect of the coming into effect the Law "On restrictions imposed on usurious activities."  

The Deputy Chairman briefly told about the situation in each of four banks - "Manas Bank", Investment bank "Issyk-Kul", "BТА Bank" and "KyrgyzCreditBank", and then he dwelled on the issue about replacement of management in two state banks. "Replace of management in "Aiyl Bank" and "RSK Bank" should have been expected. It is done for the purposes of their operation revitalizing, as shareholders has set new challenges in front of them. I’ll not keep in secret the fact that there was a confrontation between the board of directors and the members of the management board in "Aiyl Bank". Shareholders interposed in this process and changed almost all composition of two bodies. With regard to the situation around "RSK Bank", there are other issues besides detected violations related to foreign exchange transactions. "RSK Bank" is a large and systemically important bank. The funds of the Treasury and the Social Fund are recognized in it. The issue on significantly improving the quality of its operation arose nowadays. Information systems require considerable modernization. Serious reorganization is likely to be required in the network of branches, or even the structure of management. Such systemic issues require urgent settlement," he emphasized.  

In commenting upon the issue on coming into effect the Law "On restrictions imposed on usurious activities," Z. Chokoev noted that it is difficult to make any forecasts in respect of microfinance sector. "The National Bank, in its turn, will keep track on all processes and inform the public," assured the NBKR Deputy Chairman.  

 

 

The licenses/certificates to the following non-bank financial institutions and exchange offices have been issued: 

LLC "Veiron" (license № 5107 as of August 12, 2013 for the right to conduct exchange operations with foreign currency in cash), registration number 3099. Registered address: 35 A, Lermontov street, Bishkek city.  

LLC MCC "Asia Bereke Credit" № 477 dated August 16, 2013, certificate for micro crediting of individuals and legal entities. Registered address: 72, Tikhvinskiy lane, Bishkek city.  

 

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

Certificate of accounting registration of the Osh branch of MCA "KuTZHAK" №41 dated July 03, 2003 for micro crediting of individuals and legal entities has been cancelled since August 17, 2013 based on the minutes of the general meeting of the participants of the Osh branch of MCA "KuTZHAK" dated August 07, 2013, and the statement of the MCA Chairman of the Board dated August 14, 2013 on cancellation of the MCA certificate of accounting registration. Registered address: Kuu-Maidan village, Kenesh aiyl okmotu (village council), Nookatskiy district, Osh region.  

Certificate of accounting registration of the Osh branch of MCA "Sebu-Talas" №30 dated May16, 2013 for micro crediting of individuals and legal entities has been cancelled since August 17, 2013 based on Resolution №2 of the Board of Directors of the Osh branch of MCA "Sebu-Talas" dated May 27, 2013. The activities on micro crediting have been revoked. Registered address: apt. 25, 233, Otorbaev street, Talas city, Talas oblast.  

License of the FC Credit Union "Oomat" № 3 dated November 03, 1997 has been cancelled since August 17, 2013 based on the minutes of the general meeting of the FC Credit Union "Oomat" dated August 13, 2013 and the statement on the license cancellation of the Credit Union Chairman of the Board dated August 16, 2013. Registered address: 25, Linin street, Kara-Suu town, Osh oblast.  

 

 

Interbank payments 

 

Interbank Payment Systems (IPS) indicators
	Total IPS		including
			Clearing system		Gross system
	Volume,  KGS	Q-ty,  pcs	Volume,  KGS	Q-ty,  pcs	Volume,  KGS	Q-ty,  pcs
Indicators for the period from August 05 to August 17, 2013 (reporting period)
Absolute Value	29 486 784 357.39	97 059	3 258 837 160.30	90 900	26 227 947 197.09	6 159
Share in IPS payments (%)	100.0	100.0	11.1	93.7	88.9	6.3
including  (%) :
Net positions of the Common Interbank Processing Center	0.1	1.6	1.2	1.7	0.0	0.0
Outgoing to the Central Treasury	13.4	7.4	19.5	7.8	12.7	1.8
Incoming to the Central Treasury	15.0	44.8	21.3	47.6	14.3	3.1
Outgoing to the Social Fund	0.1	2.8	1.0	3.0	0.0	0.0
Incoming to the Social Fund	0.8	7.4	7.6	7.9	0.0	0.0
Average weekly indicators for the last month
Absolute Value	16 103 297 184.45	55 112	1 803 057 039.47	51 561	14 300 240 144.98	3 551
Deviation of indicators for the reporting period from average weekly indicators for the last month
Absolute Value	13 383 487 172.94	41 947	1 455 780 120.83	39 339	11 927 707 052.11	2 608
%	83.1	76.1	80.7	76.3	83.4	73.5

 

Elcart System indicators
As of	02.08.2013	17.08.2013
The total number of issued cards   (excluding reissued)	212 477	214 122
Number of POS-terminals:   - in banks   - in sale outlets	1157  647  510	1157  647  510
Number of ATMs	289	289