RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of March 31, 2022 No. 2022-P-12/19-4-(NPA)

About additional temporary solutions of National Bank of the Kyrgyz Republic concerning classification of assets of financial credit institutions

For the purpose of preserving stability in bank system of the country and according to Articles 20, "About National Bank of the Kyrgyz Republic, banks and banking activity" the Board of National Bank of the Kyrgyz Republic decides 68 and 87 Laws of the Kyrgyz Republic:

1. Make changes to the following resolutions of Board of National Bank of the Kyrgyz Republic (are applied):

- Paragraph two of ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 28.09.2022 No. 2022-P-12/60-2-(NPA)

- "About approval of the Provision "About Classification of Assets and the Corresponding Allocations to Reserve on Covering of Potential Losses and Losses" of July 21, 2004 No. 18/3.

2. To the banks and non-bank financial credit institutions registered in the Kyrgyz Republic not to charge and not to levy commission and other payments on review of conditions of credit agreements in connection with changes of cash flows and financial position of borrowers in view of influence on their activities of negative consequences of the external economic shock.

3. This resolution becomes effective from the date of its official publication and is effective before adoption of the relevant decision of Board of National Bank.

4. To legal management:

- publish this resolution on the official website of National Bank of the Kyrgyz Republic;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for entering into the State register of regulatory legal acts of the Kyrgyz Republic.

5. To management of methodology of supervision and licensing of banks to bring this resolution to the attention of OYuL "Union of Banks of Kyrgyzstan", commercial banks, all structural divisions, regional managements, representative offices of National Bank in Batken Province.

6. To management of supervision of non-bank financial credit institutions to bring this resolution to the attention of OYuL "Association of the Microfinancial Organizations", microfinance companies attracting term deposits, JSC Finance Company of Credit Unions, JSC Garantiyny fond.

7. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising management of methodology of supervision and licensing of banks.

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of March 31, 2022 No. 2022-P-12/19-4-(NPA)

Changes in some regulatory legal acts of National Bank of the Kyrgyz Republic

1. Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 28.09.2022 No. 2022-P-12/60-2-(NPA)

2. Bring in the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Provision "About Classification of Assets and the Corresponding Allocations to Reserve on Covering of Potential Losses and Losses" of July 21, 2004 No. 18/3 the following change:

in the Provision "About Classification of Assets and the Corresponding Allocations to Reserve on Covering of Potential Losses and Losses" approved by the above-stated resolution:

- seventeenth paragraph of subitem 4.1.1. state in the following edition:

"Banks can classify again issued credits in US dollars as "normal assets" if they conform to the requirements specified in Item 4.2. this provision, with forming of RPPU in the amount of 0 to 2 percent regardless of structure of the income according to domestic policy of bank. At the same time these requirements extend to the soft credits issued within cooperation of the Cabinet of Ministers of the Kyrgyz Republic with the Government of the Russian Federation (The Russian-Kyrgyz Fund of development - further Fund of development), including on the credits at the expense of the funds raised and guaranteed by Fund of development against other foreign financial institutions including earlier loans which repayment will be performed due to financing from fund of development and provides change of initial conditions of the credit agreement.".

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