of April 20, 2022 No. 2022-P-12/25-2-(NPA)
About additional temporary solutions of National Bank of the Kyrgyz Republic concerning classification of assets
For the purpose of preserving stability in bank system 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. The commercial banks participating in project implementation "Crediting of agro-industrial complex" (further - the program):
1) can classify part of the asset provided with guarantee of the Fund created within the interstate (intergovernmental) agreement (further - Fund) as "normal asset" with forming of reserve on covering of potential losses and losses in the amount of 0 percent, in case of simultaneous observance of all following conditions:
- the amount of the credits guaranteed by Fund shall not exceed balance in cash of Fund, placed in the commercial bank participating in program implementation, more than twice;
- the contract of guarantee between Fund and bank shall provide the right of bank on cash write-off without acceptance on the overdue payments which arose before bank according to the obligations guaranteed by guarantees of Fund from the current accounts of Fund opened and served in bank within 5 working days;
- the minimum balance in cash of Fund on current accounts in bank shall be supported at the level of at least 10 percent from book value of the credits of bank issued under guarantee of Fund to complete program implementation;
- in case of cash write-off of Fund without acceptance for the obligations which arose before the bank guaranteed by guarantees of Fund, the Fund shall fill up the current account in bank within three working days at least on the amount of the charged-off money;
In case of non-compliance with the conditions stated above, assets according to the characteristic signs established in the Provision "About Classification of Assets and the Corresponding Allocations to Reserve on Covering of Potential Losses and Losses" approved by the resolution of Board of National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/3 shall classify 2);
3) in case of assessment of the letters of credit guaranteed by guarantees of Fund to apply factor of credit conversion in the amount of 50% according to the Instruction for determination of standards of sufficiency (adequacy) of the capital of commercial banks of the Kyrgyz Republic approved by the resolution of Board of National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/2.
3. 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.
4. To management of methodology of supervision and licensing of banks to bring this resolution to the attention of the commercial banks participating in the program and also all structural divisions, regional managements, representative office of National Bank in Batken Province.
5. 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.
Acting as Chairman of National Bank of the Kyrgyz Republic
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