LAW OF THE KYRGYZ REPUBLIC

of June 8, 1998 No. 75

About debt restructuring of the Government of the Kyrgyz Republic before National Bank of the Kyrgyz Republic

Accepted by General Court of Jogorku Kenesh of the Kyrgyz Republic on March 24, 1998

Approved by the Meeting of national representatives of Jogorku Kenesh of the Kyrgyz Republic on May 8, 1998

Article 1. This Law regulates questions and the procedure of carrying out debt restructuring of the Government of the Kyrgyz Republic before National Bank of the Kyrgyz Republic.

Article 2. The terms used in this Law:

- securitization - process of renewal of credit debt and to the added percent in securities;

- Repo transaction - the sales agreement (purchase) of securities with the obligation of the seller (buyer) about their return purchase (sale) at the stipulated price and in the stipulated time;

- bonds state restructured the zaymagosudarstvenny securities issued for the purpose of debt restructuring.

Article 3. Debt restructuring of the Government of the Kyrgyz Republic on the loans granted by National Bank of the Kyrgyz Republic in 1992-1997 on gap covering between current incomes and expenses of the republican budget and also according to the orders of the Government of the Kyrgyz Republic, the 35th som which developed in the amount of 4444401925,, including 1938808618, 64 som - on the main debt, 440821000, of 00 som - on the debt renewed in government securities and 2064772306, of 71 som - on the added percent, is carried out by securitization method as of December 31, 1997.

Article 4. 1. Restructuring of the main debt of the Government of the Kyrgyz Republic on the credits before National Bank of the Kyrgyz Republic and debt which is already renewed in government securities in the amount 2379629618, 64 som is made by bond issue of the state restructured loan (further - OGRZ) and transfer of the Kyrgyz Republic to their National Bank.

2. OGRZ are government securities without the fixed circulation period and rate of percent.

3. The National Bank of the Kyrgyz Republic has the right to use OGRZ in short-term (up to 6 months) repo transactions for the purposes of monetary policy on the current market rates.

4. The debt of the Government of the Kyrgyz Republic on OGRZ can be renewed in other government securities of the Government of the Kyrgyz Republic.

Article 5. 1. Debt restructuring of the Government of the Kyrgyz Republic on the added percent is made by release of two promissory notes of the Government of the Kyrgyz Republic for 70 and 30 percent of the amount of the added percent, respectively on 1445772306, 71 som and 619000000, of 00 som and transfer of the Kyrgyz Republic to their National Bank.

2. The National Bank of the Kyrgyz Republic according to the procedure of transfer of 70 percent of profit to the budget according to the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic" transfers to the Government of the Kyrgyz Republic for repayment the promissory note to the amount 1445772306, of 71 som.

Article 6. The promissory note of the Government of the Kyrgyz Republic in the amount of 619000000, of 00 som is renewed in other government securities for increase in the authorized capital of National Bank of the Kyrgyz Republic.

Article 7. The new obligations of National Bank of the Kyrgyz Republic to the Government of the Kyrgyz Republic requiring execution in cash are settled due to equivalent reducing debt of the Government of the Kyrgyz Republic on bonds of the state restructured loan.

Article 8. 1. This Law becomes effective from the moment of signing.

2. To the government of the Kyrgyz Republic to sign the agreement with National Bank of the Kyrgyz Republic on reconciliation and settlement of debt on interstate calculations.

3. To the government of the Kyrgyz Republic to provide in the republican budget for 1998 of means in the amount of 26, one million som for expense recovery of National Bank of the Kyrgyz Republic connected with carrying out repo of transactions on the government medium-term bonds.

4. To the government of the Kyrgyz Republic in two weeks to prepare and introduce to Jogorku Kenesh of the Kyrgyz Republic the bill of the Kyrgyz Republic "About introduction of amendments to the Law of the Kyrgyz Republic "About the republican budget of the Kyrgyz Republic for 1998" according to Item 3 of this Article.

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