RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of June 19, 2023 No. 305

About approval of the Regulations on procedure for carrying out transactions on exchange of currency assets

According to Article 71 of the Budget code of the Kyrgyz Republic, being guided by articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic", the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve Regulations on procedure for carrying out transactions on exchange of currency assets according to appendix.

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

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of June 19, 2023 No. 305

Regulations on procedure for carrying out transactions on exchange of currency assets

1. General provisions

1. This Regulations on procedure for carrying out transactions on exchange of currency assets (further - the Provision) determine procedure for carrying out by authorized state body by forecasting and budget implementation (further - authorized body) exchange of currency assets (further - currency swap transactions) with financial credit institutes and other organizations of the Kyrgyz Republic (further - the participant).

2. The authorized body carries out currency swap transactions according to the Budget code of the Kyrgyz Republic, this Provision.

3. The authorized body performs the following types of currency swap transactions:

- direct swap;

- return swap.

4. Currency swap transactions are carried out for the purpose of providing with liquidity in national currency (direct swap) or withdrawals of excess liquidity (the return swap).

5. Participants of currency swap transactions are the financial and credit and other organizations meeting the requirements of Item 10 of this provision.

6. The participant pays the interest for using national currency established by authorized state body.

7. Relations of the participant with authorized body on currency swap transactions are regulated by this Regulations and the bilateral agreement concluded between authorized body and the participant on procedure for carrying out transactions on exchange of currency assets in the standard form (further - the Agreement) approved by authorized body.

8. Each currency swap transaction is made on the conditions determined by the agreement which is integral part of the Agreement. The agreement shall not contradict the requirements established by the Agreement.

2. Determinations and terms

In this Provision the following determinations and terms are applied:

1) currency swap transaction - transaction on exchange of national currency for equivalent foreign currency amount with the obligation of the return exchange of this amount and the added interest for using national currency through the stipulated term;

2) exchange currency - the foreign currency acting as asset on currency swap transaction;

3) the return swap is transaction in case of which the authorized body sells to the participant foreign currency in exchange for national currency with the obligation of the return exchange;

4) direct swap is transaction in case of which the authorized body buys from the participant foreign currency in exchange for national currency with the obligation of the return exchange.

3. General terms of carrying out currency swap transactions

9. For receipt of access to currency swap transaction the participant sends the intent letter of receipt of access to currency swap transaction to authorized body.

10. The participant shall meet the following requirements:

1) residence of the Kyrgyz Republic;

2) implementation of activities in the financial market within the last two years;

3) availability of the conclusion of the external auditor without clauses confirming compliance of accounting and the reporting to the established standards of the accounting and financial reporting for the last year;

4) lack of overdue debts on tax and other obligatory payments in the government budget of the Kyrgyz Republic and to insurance premiums on the national social insurance;

5) lack of arrears to other creditors and partners.

Subitems 4, 5 these Items are not applied to the international funds of development performing the activities within intergovernmental agreements.

11. The authorized body makes the decision on carrying out currency swap transaction with the participant with the publication of the relevant order. In the presence of the positive decision the authorized body and the participant sign the Agreement within which contracts on carrying out separate swap transactions are signed.

12. The authorized body determines the following conditions:

1) type of currency swap transaction:

- straight line;

- the return;

2) parameters:

- the term of currency swap transaction till 5th years with automatic prolongation up to 3 years, but no more than 2 times;

- the total amount of money on currency swap transaction cannot exceed the amount provided in the approved republican budget for the current fiscal year for repayment of obligatory payments for the international obligations of the state in equivalent of foreign currency;

- exchange currency;

- interest rate for national currency in case of the direct/return currency swap transactions;

3) additional terms:

- possibility of early completion of transaction;

- opportunity and number of early and partial completion of transaction.

13. The additional terms specified in Item 12 of this provision are determined only in coordination with the participant and are specified in the Agreement.

14. The conditions of carrying out currency swap transactions specified in Provision Item 12 appear authorized body to the participant in case of agreement signature.

15. The authorized body and the participant provide confidentiality of the data specified in the Agreement.

16. The term of charge of percent on currency swap transaction is determined as the period expressed in calendar days and is calculated, since the day following behind day of write-off/transfer of money in national/foreign currency and about day of the return write-off / transfer of money in national/foreign currency inclusive. Repayment of the added percent will be made according to terms of agreement.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info