The Deputy Chairman of the National Bank Mrs. Baktygul Jeenbaeva attended a meeting of the Interagency Commission on increasing the share of non-cash payments and settlements in the Kyrgyz Republic
The Deputy Chairman of the National Bank of the Kyrgyz Republic Mrs. Baktygul Jeenbaeva attended a meeting of the Interagency Commission on increasing the share of non-cash payments and settlements. The meeting was held under the chairmanship of the Prime Minister of the Kyrgyz Republic Mr. Djoomart Otorbaev, with the participation of the Minister of Economic Affairs Mr. Temir Sariev, Chief of the Government Staff Mr. Nurhanbek Momunaliev and representatives of the country’s banking sector.
According to the Prime Minister, the development of the economy in 2015 is currently being discussed at governmental level, and there is a clear understanding that the economy of the country is facing certain difficulties in its development.
"We have to seek existing development reserves, and among them I see great potential in terms of legalization of the shadow economy, which we shall use effectively. Based on various studies, the size of informal economy ranges from 40% to 60%, which constitutes at the very minimum about $3 billion of unregistered operations, transactions, projects", informed the Head of Government.
He also noted that, today, consumers and payers practice cashless payments; however, the number of transactions is growing not as fast.
"This refers to a comprehensive attack on the informal economy. However, we cannot fulfill it without commercial banks," added Mr. Djoomart Otorbaev.
In their turn, the representatives of commercial banks have raised questions about the need for mandatory payments of wages in non-cash form in the private sector.
In addition, during the meeting the Chief of the Government Staff Mr. Nurhanbek Momunaliev announced the results of the implementation of the State program on increasing the share of non-cash payments and settlements in the Kyrgyz Republic and the work done by the Interagency Commission for the period from 2012 to 2014.
As Mr. Nurhanbek Momunaliev noted, in the country, except for remote regions, from 2012 to 2014, the number of budget organizations that transfer salaries to their employees’ bank cards in non-cash form increased from 40% to 90%. Due to the introduction of the project "Map of a pensioner", among 590.6 thousand of pensioners in the country in general 197.6 thousand people (33.4%) receive pensions in their bank cards in non-cash form through commercial banks, and 393 thousand people (66.6%) - through the State Enterprise "Kyrgyzpochtasy". At present, 40 percent of all payments to the budget are transferred from the taxpayers’ bank accounts. In 2014, the number of payments transferred through 254 POS-terminals was equivalent to 4.382 thousand, amounting to 1.668 million soms. There has been observed a growth in the number and volume of tax payments made through the terminals. In 2014, 30.361 thousand payments were made in the amount of 52 million 202.8 thousand soms.
"From January 1, 2012 to December 31, 2014 the number of bank cards in circulation increased 3.3 times and currently amounts to 909 thousand cards. The volume of bank cards operations increased 3.4 times, and in 2014 amounted to 83 billion 806.2 million soms. The number of ATMs increased 2.2 times for the reporting period and amounted to 998 units. The number of POS-terminals increased 2.3 times, and by the end of 2014 there were 4 thousand 675 terminals, out of which 3 thousand 526 are located in the retail and service outlets," said Mr. Nurhanbek Momunaliev.
It was also noted that along with positive trends in the development of non-cash forms of payments and settlements, problems still exist in this issue.
At the conclusion of the meeting, the Prime Minister stressed the need to continue working on the further development of non-cash payments and infrastructure, focus on raising awareness of citizens about the benefits of cashless payments and increasing financial literacy, continue educating the public on financial literacy, develop capacities on the provision of remote banking services.
The National Bank’s employees have completed training on communications basics with the media
The National Bank of the Kyrgyz Republic held trainings aimed at developing the bank employees’ public speaking skills in mass media. The training with the participation of the leading media expert Mr. Mars Tulegenov involved key department officers of the National Bank of the Kyrgyz Republic.
Participants learned about specifics of dialogue communication on the television and peculiarities of the viewer's perception of different types of media. The media expert also talked about peculiarities of the speakers’ behavior in front of the video and web cameras, including – in the regime of live broadcast, about the style of clothing for a television interview, etc.
An additional attention at the training was given to the types of television interviews, methods of conveying complex information on the issues of economics and finance to different target audiences.
Each participant gave interview on the video camera. The National Bank’s specialists tried on the role of journalists. By the end of the practical session a discussion was held with regard to each video presentation; the media expert gave recommendations for all the speakers.
The training’s participants stressed the importance and necessity of such training events as to raise the level of theoretical knowledge and to use the gained practical skills in the professional activity.
The National Bank of the Kyrgyz Republic held a discussion on the development of non-cash payments in the regions of the country
The Deputy Chairman of the National Bank of the Kyrgyz Republic Mrs. Baktygul Jeenbaeva met with the Head of the Association of Legal Entities "Union of Kyrgyz Banks" Mr. Anvar Abdraev and the management of commercial banks.
The parties discussed details of the draft agreement "On Import of Banking Equipment in the Territory of the Kyrgyz Republic for 2015-2017", which is planned to be concluded between the National Bank and commercial banks, due to adoption of the Law of the Kyrgyz Republic "On amendments to the Tax Code of the Kyrgyz Republic".
In particular, this referred to the quantity of banking equipment, which has been planned to import to the country in the next three years, as well as the plan of equipment supplies for the regions of the country under the framework of implementation of the Government program of activities for 2014-2017 on increasing non-cash payments and settlements in the Kyrgyz Republic.
After the discussions, participants of the meeting agreed to finalize the Plan for the supply of equipment taking into account the given suggestions.
Signing of the Agreement will provide the public in the regions access to the banking and payment services, and thus will give a new impetus to the development of the system of cashless payments in the country.
The agreement is planned to be signed in the near future.
Background information:
The Law of the Kyrgyz Republic "On amendments to the Tax Code of the Kyrgyz Republic" was signed by the President of the Kyrgyz Republic Mr. Almazbek Atambaev on February 20, 2015.
The law was adopted by the Jogorku Kenesh of the Kyrgyz Republic on January 29, 2015.
The law is aimed at increasing the share of non-cash payments in the Kyrgyz Republic through the expansion of infrastructure of commercial banks’ payment systems. The law provides the exemption from VAT payments on import of banking equipment (ATMs, POS-terminals, payment terminals and bank kiosks).
The law is temporary and is valid until December 31, 2017.
The Law shall come into force upon the expiration of 15 days from the date of publication.
The National Bank of the Kyrgyz Republic has issued a license to the "FINCA Bank" CJSC
The National Bank of the Kyrgyz Republic, on March 3, 2015, issued the Closed Joint Stock Company "FINCA Bank" a license for carrying out banking operations in national and foreign currencies.
Earlier, by the Resolution of the Board of the National Bank of the Kyrgyz Republic it was agreed to issue the "FINCA Bank" CJSC a preliminary authorization for obtaining a license to conduct banking operations. On February 11, 2015, the "FINCA Bank" CJSC issued a notification about fulfillment of all requirements for establishing a bank and organization of its activities.
The Chairman of the Board of "FINCA Bank" CJSC Mrs. Margarita Cherikbaeva when receiving a banking license has noted: "The transformation of "FINCA" CJSC into a commercial bank is the next stage in the development of the company, which is a part of the global network of FINCA International that comprises banks and microfinance organizations in 23 countries of the world. With the provision of banking services the contribution of "FINCA" CJSC to the development of the local communities will grow. We will work for the development of the banking sector and Kyrgyzstan in general."
Background information:
FINCA started its activities on the market of Kyrgyzstan in 1995. As of the end of December of 2014, the share of FINCA among microfinance companies amounted to 33 percent by the number of customers, by the volume of loan portfolio – 36 percent; the loan portfolio according to data as of February 1, 2015 amounted to 7.5 billion soms.
"FINCA" CJSC will offer the public the full range of banking services: savings accounts, fixed deposits, loans, various money transfer systems, exchange operations, debit, credit cards, new channels of access to the banking services.
The National Bank of the Kyrgyz Republic: the microfinance company "Kompanion Financial Group" has attracted European investments into economy of the Kyrgyz Republic
The National Bank of the Kyrgyz Republic informs about the accession of three new shareholders into the MFC "Kompanion Financial Group" CJSC and the increase in the organization’s charter capital from 650.4 million soms to 1 billion 616 thousand soms. The new shareholders are represented by international financial and credit institutions and funds of the Netherlands and the Grand Duchy of Luxemburg that have a social and innovational orientation. The main shareholder and holder of 65% of shares remains the incorporator of the "Kompanion" company – international non-governmental organization on economic development and support MercyCorps.
The holder of 17,5% of shares of the "Kompanion" company will be the Dutch development bank (FMO), the main activity of which involves provision of loans, guarantees and capital to the private sector enterprises in the developing countries. The Dutch development bank holds an AAA international long-term credit rating. The state share represented by the Ministry of Finance of the Netherlands constitutes 51% of shares in the capital structure of the bank.
Two investment funds of Tridos accounts for 17.5% of shares in aggregate:
- TriodosFairShareFund (Netherlands) is the first investment fund, which was awarded an official status of a socio-ethnical investment institution;
- TriodosSicavII TriodosMicrofinanceFund (Luxemburg) invests in the financial services for the low-income people in the developing countries.
On March 4, 2015, the National Bank of the Kyrgyz Republic held a meeting of the management of the NBKR and MFC "Kompanion Financial Group" CJSC dedicated to the issue of increasing the charter capital of the organization.
The Chairman of the National Bank of the Kyrgyz Republic Mr. Tolkunbek Abdygulov congratulated the representatives of the MFC "Kompanion Financial Group", noting that its team have made great efforts to attract serious investors in Kyrgyzstan. "This is a historic step for the financial system of the country when an investor with such rating comes into our market. Any investor before investing money looks at not only financial performance, but also the development prospects of the company. "Kompanion" has been working for long in the lending market and has gained some credibility and client base. The National Bank is encouraged by the fact that you not only concentrate on your direct functions, but also work on the development of the local communities," said Mr. T. Abdygulov.
The National Bank of the Kyrgyz Republic and the Asian Development Bank discussed the prospects of bilateral cooperation
The Deputy Chairman of the National Bank of the Kyrgyz Republic Mrs. Lada Orozbaeva met with the Senior Economist of the Permanent Representation of the Asian Development Bank in the Kyrgyz Republic Mrs. Gulkair Tentieva.
During the meeting, the parties discussed the implementation of the ADB's strategy of partnership with the Kyrgyz Republic, the business plan of ADB operations in the country for 2016-2018.
The ADB representative spoke to the participants of the meeting about the ongoing ADB projects in the country in the field of energy, road infrastructure, water supply and other fields. In addition, the information was provided regarding a strategic document - the plan "CountryKnowledgePlans" (Informational and intellectual products in the country), which will be implemented in the country in the next three years. According to Mrs. G. Tentieva, the plan consists of two major components. The first component reflects the needs and demands of the Kyrgyz Republic for the products of knowledge; the second component defines the ADB priorities in assisting the country to fill the gaps in the products of knowledge within strategic sectors and themes.
In her turn, Mrs. L. Orozbaeva stressed the interest of the National Bank in the cooperation with the ADB. In particular, this concerned assistance in assessing the market of Islamic products, the market of microfinance services, international money transfer systems, and also assistance in developing the legal framework relating to the activities of cooperative banks. The parties also discussed the issues of technical assistance in educating employees of the National Bank of the Kyrgyz Republic in the area of risk-based supervision of microfinance organization.
Licenses/certificates were issued to the following non-financial credit institutions and exchange offices:
1. "Trofimushkin" LLC (license № 5216 from March 4, 2015 for carrying out foreign exchange operations in cash). Legal address: 70-17 Mira Avenue, Bishkek city.
Certificates/licenses of the following non-financial credit institutions and exchange offices were annulled/revoked:
1. Certificate of accounting registration of MCA "Aman-Credit" LLC № 153 from August 21, 2008 for carrying out microcrediting of physical and legal persons is annulled. Legal address: 15-28, microdistrict Uchkun, Bishkek city.
2. Certificate of accounting registration of MCA "FINCA" CJSC № 8 from July 22, 2003 for carrying out microcrediting of physical and legal persons is annulled. Legal address: 93/2 Shopokov Street, Bishkek city.
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Interbank Payment Systems (IPS) indicators |
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|
Total IPS |
including |
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|
Gross system |
Clearing system |
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|
Volume, KGS |
Quantity, pcs |
Volume, KGS |
Quantity, pcs |
Volume, KGS |
Quantity, pcs |
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Indicators for the period from March 2 to 6, 2015 (reporting period) |
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|
Absolute Value |
39 062 822 760.02 |
58 223 |
1 931 197 219.93 |
52 382 |
37 131 625 540.09 |
5 841 |
|
Share in IPS payments (%) |
100.0 |
100.0 |
4.9 |
90.0 |
95.1 |
10.0 |
|
Including (%): |
|
|
|
|
|
|
|
Net positions of the Common Interbank Processing Center |
0.1 |
1.7 |
2.7 |
1.8 |
0.0 |
0.0 |
|
Outgoing to the Central Treasury |
11.7 |
12.0 |
32.4 |
13.3 |
10.6 |
0.5 |
|
Incoming to the Central Treasury |
7.4 |
43.3 |
12.9 |
47.9 |
7.1 |
2.1 |
|
Outgoing to the Social Fund |
0.02 |
0.2 |
0.4 |
0.3 |
0.0 |
0.0 |
|
Incoming to the Social Fund |
0.2 |
6.5 |
4.5 |
7.2 |
0.0 |
0.0 |
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Average weekly indicators for the previous month |
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|
Absolute value |
29 583 587 846.61 |
53 582 |
1 466 425 876.00 |
49 078 |
28 117 161 970.61 |
4 503 |
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Deviation of indicators for the reporting period from average weekly indicators for the previous month |
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|
Absolute value |
9 479 234 913.41 |
4 641 |
464 771 343.93 |
3 304 |
9 014 463 569.48 |
1 338 |
|
% |
32.0 |
8.7 |
31.7 |
6.7 |
32.1 |
29.7 |
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Elcart System Indicators |
|
|
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As of |
27.02.2015 |
10.03.2015 |
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The total number of issued cards (excluding reissued) |
384 092 |
385 625 |
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Number of POS-terminals: - in banks - in sale outlets |
1 489 789 700 |
1494 794 700 |
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Number of ATMs |
431 |
432 |