ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of November 13, 2014 No. 648

About approval of the Technique of calculations of prudential standard rates for the accumulation pension funds and report forms about accomplishment of prudential standard rates

For the purpose of the prevention of deterioration in financial condition, ensuring accomplishment by the accumulation pension funds of prudential standard rates, and also "About the accumulation pension funds in the Kyrgyz Republic" the Government of the Kyrgyz Republic decides reducings the risks connected with instability and insolvency of the accumulation pension funds according to article 25 of the Law of the Kyrgyz Republic:

1. Approve:

Technique of calculations of prudential standard rates for the accumulation pension funds according to appendix 1;

- report form about accomplishment of prudential standard rates according to appendix 2;

- form of submission of additional data for calculation of prudential standard rates of solvency according to appendix 3.

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

Appendix 1

to the Order of the Government of the Kyrgyz Republic of November 13, 2014 No. 648

Method of calculation of prudential standard rates for the accumulation pension funds

1. General provisions

1. This Technique is developed according to article 25 of the Law of the Kyrgyz Republic "About the accumulation pension funds in the Kyrgyz Republic" and establishes normative values and formulas of calculations of standard rates of solvency for the accumulation pension funds, and also forms and terms of submission of the report on accomplishment of standard rates of solvency and additional data for calculation of standard rates of solvency.

2. For the purpose of the prevention of deterioration in financial condition, ensuring accomplishment by the accumulation pension funds of prudential standard rates, and also reducings the risks connected with instability and insolvency of the accumulation pension funds (further - NPF), are established by this Technique the following types of prudential standard rates:

- standard rates of solvency;

- standard rates of financial stability.

3. Indicator of solvency of NPF is observance of normative ratios between undertaken obligations and assets taking into account their liquidity.

4. Indicators of financial stability of NPF include:

- minimum sizes of the authorized capital;

- sizes of pension reserves and other obligations.

5. Normative values and formulas of the measure calculations specified in item 4 of this Technique are established by the Government of the Kyrgyz Republic.

2. Standard rates of solvency

6. Solvency of NPF is provided with the following standard rates:

1) the standard rate of sufficiency of highly liquid assets calculated as the relation of cost of highly liquid assets to the amount of pension reserves on the following formula:

where:

Nva - the standard rate of sufficiency of highly liquid assets;

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