RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of May 18, 2022 No. 2022-P-12/31-1-(BS)

About approval of the Provision "About Procedure of Syndicated Crediting in the Kyrgyz Republic"

According to articles 20 and 68 of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the Provision "About Procedure of Syndicated Crediting in the Kyrgyz Republic" it (is applied).

2. This resolution becomes effective after 15 (fifteen) days from the date of official publication.

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 OYuL "Union of Banks of Kyrgyzstan", commercial banks, National bank of development of the Kyrgyz Republic, the relevant structural divisions, regional managements and representative office of National Bank of the Kyrgyz Republic in Batken Province.

5. To management of supervision of non-bank financial credit institutions to bring this resolution to the attention of the microfinance companies having the right to attraction of term deposits (deposits).

6. To impose control of execution of this resolution on the board member supervising management of methodology of supervision and licensing of banks.

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of May 18, 2022 No. 2022-P-12/31-1-(BS)

Regulations on procedure of syndicated crediting in the Kyrgyz Republic

1. General provisions

1. This Provision extends to the commercial banks, microfinance companies attracting term deposits (deposits) which participate in syndicated crediting (further - banks) and governs the relations arising in case of their joint crediting of the borrower.

Besides, this Provision contains regulations according to which means of legal entities (residents, nonresidents), including the international organizations are issued in the form of syndicated loans from bank name.

2. The purpose of this provision is determination of procedure of syndicated crediting in the Kyrgyz Republic.

3. For the purpose of this Provision the following determinations are used:

bank organizer - the bank which is without fail the creditor and acting as the initiator on search of partners for participation in syndicated crediting based on the credit request of the borrower and also the speaker responsible for the organization of work on provision of syndicated loan (preparation of projects and agreement signature about provision of syndicated loan, the credit agreement, pledge agreement);

the borrower - the legal entity (the resident, the nonresident). If the nonresident borrower, that development of syndicated loan shall be performed in the territory of the Kyrgyz Republic;

the large project is the project aimed at the social and economic development of the Kyrgyz Republic including for development of industrial production and the sphere of trade where the size of syndicated loan exceeds 15 percent of the size of the net total capital of bank organizer;

syndicated crediting - joint crediting of the borrower by bank (or several banks) according to large projects on its own behalf and legal entities (residents, nonresidents), including the international organizations whose means are issued in the form of syndicated loan from bank name, on contractual conditions according to requirements of National Bank, except cases when means of the international organizations are issued to banks within special programs of financing of banks by the international organizations;

the agreement on provision of syndicated loan - the agreement signed between all participants of process of provision of syndicated loan;

participants - commercial banks, including bank organizer, the microfinance companies attracting term deposits (deposits), National bank of development of the Kyrgyz Republic participating in process of provision of syndicated loan and also legal entities (residents and nonresidents) including the international organizations, whose means are issued in the form of syndicated loans from bank name, except cases when means of the international organizations are issued to banks within special programs of financing of banks by the international organizations.

4. The syndicated loan is granted for the purpose of financing of large projects, including large investment projects, except for refinancings. At the same time the syndicated loan cannot be utilized directly or indirectly for share purchase (shares) of participants.

Participants have the right to yield rights to claim on credit share to other participants in accordance with the terms of the agreement on provision of syndicated loan.

5. Syndicated crediting is performed on the terms of recoverability, the paid nature, security, urgency and target use which issue is performed on the basis of the credit agreement signed between the borrower and bank (banks) (further - the credit agreement). The credit agreement is signed after agreement signature about provision of syndicated loan.

6. The term of provision of syndicated loan, the size of its interest rate and the size of penalty (penalties, penalty fee) are determined in accordance with the terms of the agreement on provision of syndicated loan, the credit agreement, and also with requirements of the legislation of the Kyrgyz Republic.

7. The bank organizer after agreement signature about provision of syndicated loan in accordance with the established procedure provides within 5 (five) calendar days in National Bank the notification on agreement signature on provision of syndicated loan with the copy of the agreement on provision of the syndicated loan signed by participants.

8. Syndicated crediting is performed according to the domestic credit policy and the credit strategy of bank approved by their board of directors which are integral part of general credit strategy of bank.

9. In bank the internal procedures regulating procedure and conditions of issue of syndicated loans in case of which development the bank shall be guided by the requirements established in regulatory legal acts of National Bank shall be developed.

10. In case of syndicated crediting banks shall observe the economic standard rates and requirements established by National Bank, including in case of issue of syndicated loan within value set standard rates.

Syndicated loans cannot be issued to persons affiliated with banks.

11. The agreement on provision of syndicated loan shall contain at least the following:

1) description of structure and purpose of syndicated loan;

2) determination and the list of participants, including bank organizer, signed this agreement;

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