Creation date: 2015-02-09

The National Bank of the Kyrgyz Republic made a decision to raise the discount rate to 11.00 percent 

In view of continuing pressure on the exchange rate and, accordingly, on inflation, the National Bank of the Kyrgyz Republic made a decision to raise the discount rate by 50 basis points to 11.00 percent per annum.  

The inflationary background, formed by both external and internal factors, remains high. According to the preliminary data, as of mid-January, the annualized inflation rate has been equivalent to 10.4 percent, accumulated since the beginning of the current year - 0.4 percent. 

Statistical data of 2014 demonstrates the slowing down of the economic growth rates in the Kyrgyz Republic; the decline of the economic situation is also observed in the countries - main trading partners of the Kyrgyz Republic. According to the preliminary data, in 2014 the real GDP growth in the country has been equivalent to 3.6 percent. The volumes of foreign trade transactions have been decreasing. The amount of cash inflow by bank transfer has been reducing. Instability of the external financial markets remains, which along with the abovementioned factors causes an increase of the pressure on the domestic foreign exchange market and, accordingly, on the inflation rate.  

The National Bank of the Kyrgyz Republic will continue to monitor the situation in the economy of the country and in accordance with its statutory mandate will take the appropriate monetary policy measures, aimed at setting in the medium term the inflation to the range of 5-7 percent, defined by the Principal guidelines of the monetary policy 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 discount rate, is scheduled for February 24, 2015.  

 

 

The Chairman of the National Bank of the Kyrgyz Republic met with the Mission of the Asian Development Bank  

The Chairman of the National Bank of the Kyrgyz Republic Mr. Tolkunbek Abdygulov met with the representatives of the Asian Development Bank Mission headed by Mr. Betty Wilkinson, the Director of the Public Management, Financial Sector, and Trade Division of the Central and West Asia.  

During the meeting the parties discussed the results of the work of the National Bank of the Kyrgyz Republic within the framework of the Second Investment Climate Improvement Program, development of the public-private partnership (PPP) and the state of the business environment for the private sector development.  

At the end of the meeting the issues of further cooperation between the financial institutions were discussed. Following the results of the meeting, the parties came to the agreement that the Asian Development Bank will provide the National Bank of the Kyrgyz Republic with the technical assistance, namely - the Asian Development Bank specialists will arrive in the Kyrgyz Republic to provide advice on the development of the principles of Islamic financing.  

 

 

Mr. Abdygulov met with the heads of commercial banks 

Commercial banks disburse loans in local currency without restrictions. The heads of commercial banks of the country have informed about this during the meeting with the Chairman of the National Bank of the Kyrgyz Republic Mr. Tolkunbek Abdygulov. The Head of the Union of Banks Mr. Anvar Abdraev also attended the meeting.  

During the meeting the parties discussed the current situation in the banking sector, addressing the issues of credit financing in local currency, credit auctions held by the National Bank and interest rates on credits and deposits.  

The heads of commercial banks informed that the banks issue loans in local currency without restrictions and expressed readiness to participate in the credit auctions of the National Bank. "As of interest rates, there is a slight increase," - they stated. 

 

 

The head of the NBKR met with representatives of microfinance organizations 

The chairman of the National Bank of the Kyrgyz Republic Mr. Tolkunbek Abdygulov met with the heads of three large microfinance organizations - MFC "Finca" CJSC, MFC "Mol Bulak Finance" LLC and MFC "Kompanion Financial Group" CJSC. 

During the meeting the parties discussed the current situation in the microfinance sector, including the cost establishment of financial resources and assistance in credit financing of borrowers from remote regions who work in the agrarian sector of the country. 

The microfinance organizations have provided information on the cost of financial resources, which they have borrowed from international financial organizations and donors in foreign currency, by noting that they provide loans to people in local currency.  

Following the meeting, the parties agreed to explore possible measures in creating conditions for the further growth of credit financing by the microfinance sector. 

 

 

The state officials of the Kyrgyz Republic and the IMF representatives discussed the issues of countering money laundering and financing of terrorism 

In the period from January 19th to 28th, 2015, the mission of the International Monetary Fund was held in Bishkek, aimed at assessing the system of the Kyrgyz Republic on countering financing of terrorism and money laundering (AML/CFT). In the course of the visit, members of the mission held a series of meetings with the representatives of ministries and departments, where they discussed the current practices of implementation of the AML/CFT legislation, the role of each body in the state structure, as well as the issue of the state bodies’ existing needs for the effective implementation of their functions in this area. 

At the concluding meeting between the state officials and the IMF, the final results of the mission in Kyrgyzstan were announced. The IMF representatives expressed their intention to continue cooperation with the Kyrgyz side in improving the legislation and strengthening the capacity of the state bodies in the framework of the AML/CFT activities. 

 

 

The head of the National Bank and the representatives of the IMF mission discussed the issues of further cooperation between the Kyrgyz Republic and the IMF 

The National Bank of the Kyrgyz Republic held the concluding meeting within the framework of the visit of the International Monetary Fund (IMF) Mission in the Kyrgyz Republic from January 21th to 29th. The meeting was led by the Chairman Mr. Tolkunbek Abdygulov on behalf of the National Bank and the Head of the Mission Mr. Edward Gemayel on behalf of the IMF.  

During the meeting the parties discussed the Draft Memorandum on Economic and Financial Policies for years 2015-2018 within the framework of the new possible agreement between the Kyrgyz Republic and the IMF. In particular, the issues of the current economic situation in the country, the NBKR policy measures in the monetary area, financial market development, and issues related to the "Banking Code" project were discussed. In addition, the economic prospects of the country for the year 2015 and the courses of the further cooperation between the Kyrgyz Republic and the IMF were held under discussion. 

 

 

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

1. "Munara-Trade" LLC (license No. 5205 dated January 29, 2015 for carrying out foreign exchange operations in cash). Legal address: 20 Manas Street, Uzgen city, Osh oblast (the orienting point is the central market of Uzgen, the first hall of munara). 

 

 

Certificates/licenses of the following non-financial credit institutions and exchange offices have been cancelled/revoked: 

1. Certificate of accounting registration of Public Fund MCA "Kochkor-Credit", No. 62 dated April 22, 2004 for micro-crediting of physical and legal persons has been cancelled. Legal address: Vocational School No. 15, Kara-Too town, Kochkor province, Naryn oblast. 

2. License of the Financial Cooperative CU Jamaat-Invest, No. 417 dated July 12, 2002 has been cancelled. Legal address: 33-2 Lenin Street, Shamaldy - Sai town, Tashkumyr city, Jalal Abad oblast. 

 

 

Information on remittances 

- In accordance with the Remittances Rules in the territory of the Kyrgyz Republic (amendments in accordance with the Decree of the Board of the National Bank of the Kyrgyz Republic No.34/10 dated July 31, 2014), in January 27, 2015, an operator of the local remittance system "Issyk-Kul Transfer" - Investbank "Issyk-Kul" OJSC was registered under registration number 1028270115 in the list of operators that provide remittance services in the territory of the Kyrgyz Republic. 

- In accordance with the Remittances Rules in the territory of the Kyrgyz Republic (amendments in accordance with the Decree of the Board of the National Bank of the Kyrgyz Republic No.34/10 dated July 31, 2014), in January 28, 2015, an operator of the international remittance system "Salam" - "FinanceCreditBank KAB" OJSC was registered under registration number 1029280115 in the list of operators that provide remittance services in the territory of the Kyrgyz Republic. 

- In accordance with the Remittances Rules in the territory of the Kyrgyz Republic (amendments in accordance with the Decree of the Board of the National Bank of the Kyrgyz Republic No.34/10 dated July 31, 2014), in January 28, 2015, an operator of the local remittance system "Amanat" - "Dos Credobank" OJSC was registered under registration number 1030280115 in the list of operators that provide remittance services in the territory of the Kyrgyz Republic. 

- In accordance with the Remittances Rules in the territory of the Kyrgyz Republic (amendments in accordance with the Decree of the Board of the National Bank of the Kyrgyz Republic No.34/10 dated July 31, 2014), in January 27, 2015, an operator of the local remittance system "Transit" - "BTA Bank" CJSC was registered under registration number 1027270115 in the list of operators that provide remittance services in the territory of the Kyrgyz Republic. 

 

 

Interbank payments 

 

Interbank Payment Systems (IPS) indicators 

 

 

Total IPS 

including 

Clearing system 

Gross system 

Volume, 

KGS 

Quantity, 

pcs 

Volume, 

KGS 

Quantity, 

pcs 

Volume, 

KGS 

Quantity, 

pcs 

Indicators for the period from January 26 to 30, 2015 (reporting period) 

Absolute Value 

35 140 727 111.88 

60 297 

1 717 826 800.75 

55 651 

33 422 900 311.23 

4 646 

Share in IPS payments (%) 

100.0 

100.0 

4.9 

92.3 

95.1 

7.7 

Including  

(%): 

  

  

  

  

  

  

Net positions of the Common Interbank Processing Center  

0.05 

1.3 

0.9 

1.4 

0.0 

0.0 

Outgoing to the Central Treasury  

8.1 

7.1 

25.4 

7.4 

7.2 

3.5 

Incoming to the Central Treasury  

5.4 

55.2 

15.9 

59.5 

4.8 

3.0 

Outgoing to the Social Fund  

0.01 

0.2 

0.2 

0.3 

0.0 

0.0 

Incoming to the Social Fund 

0.1 

4.3 

2.4 

4.6 

0.0 

0.0 

Average weekly indicators for the last month 

Absolute value 

39 988 444 810.59 

79 212 

2 547 274 675.43 

71 554 

37 441 170 135.17 

7 658 

Deviation of indicators for the reporting period from average weekly indicators for the last month 

Absolute value 

-4 847 717 698.71 

-18 915 

-829 447 874.68 

-15 903 

-4 018 269 824.04 

-3 012 

% 

-12.1 

-23.9 

-32.6 

-22.2 

-10.7 

-39.3 

 

Elcart System Indicators 

As of 

23.01.2015 

30.01.2015 

The total number of issued  

cards (excluding reissued)  

368 630 

372 019 

Number of POS-terminals:  

- in banks  

- in sale outlets  

1508 

775 

733 

1510 

776 

734 

Number of ATMs 

429 

430