LAW OF THE KYRGYZ REPUBLIC

of July 29, 1997 No. 59

About National Bank of the Kyrgyz Republic

Accepted by General Court of Jogorku Kenesh of the Kyrgyz Republic on June 16, 1997

Approved by the Meeting of national representatives of Jogorku Kenesh of the Kyrgyz Republic on July 2, 1997

Chapter I. General provisions

Article 1. National Bank of the Kyrgyz Republic

1. The National (Central) Bank of the Kyrgyz Republic (further - Bank of Kyrgyzstan) is bank of the Kyrgyz Republic and is in its property.

2. The bank of Kyrgyzstan is legal entity with independent form of business - Central Bank of the Kyrgyz Republic, performing the activities according to this Law and not pursuing the profit earning aims.

3. The location of Bank of Kyrgyzstan is the city of Bishkek. The bank of Kyrgyzstan has the right to create branches, representations and to appoint the representatives in the Kyrgyz Republic and abroad.

The bank of Kyrgyzstan has seal with the name and the image of the State Emblem of the Kyrgyz Republic.

4. It is forbidden to use phrases "Bank of Kyrgyzstan", "Kyrgyz Banky", abbreviations of TsBKR, NBKR, and also the word "Central", "National" in names and symbolics of other banks in the complete or reduced type in any language.

5. The Kyrgyz Republic does not bear responsibility according to obligations of Bank of Kyrgyzstan. The bank of Kyrgyzstan does not bear responsibility according to obligations of the Kyrgyz Republic.

Article 2. Purpose of activities of Bank of Kyrgyzstan

The purpose of activities of Bank of Kyrgyzstan are achievement and maintenance of price stability by means of carrying out the corresponding monetary policy according to this Law.

Article 3. Main objective of Bank of Kyrgyzstan

The main objective promoting goal achievement (or subordinate main objective) activities of Bank of Kyrgyzstan, is maintenance of purchasing power of national currency, ensuring efficiency, safety and reliability bank and payment system of the republic for assistance to the long-term economic growth of the republic.

Article 4. Functions of Bank of Kyrgyzstan

The bank of Kyrgyzstan performs the following functions:

Determines 1) and pursues monetary policy in the Kyrgyz Republic;

Develops 2) and performs single monetarist policies;

3) has exclusive right of carrying out issue of bank notes;

4) is last resort lender for banks according to this Law;

5) establishes rules of carrying out banking activities including on the basis of the Islamic principles of banking and financing, financial accounting and reporting for bank system;

6) grants the banking license, attraction of money by legal entities from the population on the terms of urgency, recoverability and the paid nature according to the legislation of the republic and keeps the register of the granted licenses;

7) exercises regulation and supervision of activities of the banks and financial credit institutes licensed by Bank of Kyrgyzstan;

8) promotes effective functioning of payment system and implementation of interbank payments;

9) is performed by currency control, including the edition of the standard rates regulating transactions with foreign currency and also transactions on purchase, sale and exchange of foreign currency according to the legislation of the republic;

10) owns and manages official currency holdings according to this Law;

11) is constituted together with National Statistical Committee by paying balance of the Kyrgyz Republic;

12) represents the interests and speaks on behalf of the Kyrgyz Republic at the international meetings, conferences and the organizations concerning monetary and bank policy;

13) performs other functions, powers and the rights according to the legislation of the Kyrgyz Republic.

Article 5. Transactions of Bank of Kyrgyzstan

For achievement of the purposes established by this Law the Bank of Kyrgyzstan has the right on the conditions determined by it to perform the following transactions:

1) to grant the loans for term no more than six months on security the securities and other assets determined by Bank of Kyrgyzstan according to this Law and the legislation of the Kyrgyz Republic;

2) to perform banking activities on servicing of banks and other financial credit institutes;

3) to buy and sell checks, simple and the drafts of the first-class issuers having, as a rule, commodity origin with repayment periods no more than six months;

4) to buy and sell the securities issued by the Government of the Kyrgyz Republic in the secondary market;

5) to buy and sell the securities issued by Bank of Kyrgyzstan and also the securities issued by foreign states, the international organizations;

6) to buy and sell precious metals and other types of currency values;

7) to buy and sell foreign currency;

8) to open accounts in banks and financial institutions;

9) to act as the intermediary in the transactions connected with the means provided by the international financial institutions for financing of various programs on the conditions established by Bank board of Kyrgyzstan;

9-1) to perform transactions on purchase of foreign currency with the obligation of its return sale with the international organizations created by the Kyrgyz Republic together with other states within the Eurasian Economic Union (EEU) for the funds allocated by them for preferential financing of economy of the Kyrgyz Republic;

9-2) to provide money in national currency on the terms of the paid nature, to urgency and recoverability on security foreign currency to the international organizations created by the Kyrgyz Republic together with other states within the Eurasian Economic Union (EEU) for the projects and programs of preferential financing of economy of the Kyrgyz Republic performed by them;

10) to perform other banking activities which are not forbidden by the legislation.

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