RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of October 27, 2016 No. 43/6

About transfer of currency means of commercial banks into currency accounts of National Bank of the Kyrgyz Republic

Due to the high probability of emergence of the risks connected with absence at commercial banks of opportunity quickly to perform conclusion of the currency assets placed on correspondent accounts at the foreign financial institutions experiencing deterioration in financial condition and/or considered as having high risk of insolvency and/or bankruptcy according to Articles 7, 22 and 43 Laws "About National Bank of the Kyrgyz Republic" Board of National Bank of the Kyrgyz Republic decides:

1. Permit the commercial banks of the Kyrgyz Republic having the currency assets placed on the correspondent accounts opened in DeutscheBank, AG and DeutscheBankTrustCompanyAmericas to make transfer of currency funds for the correspondent accounts of National Bank of the Kyrgyz Republic (further - National Bank) opened in foreign corresponding banks of National Bank within the amount of remaining balance on balance sheet accounts for date of the official address, for the term of no more than 3 months, with the following provisions:

- the maximum amount of currency means which is subject to transfer into accounts of National Bank is established by National Bank based on the official appeal of commercial bank. The official appeal of commercial bank shall include confirmation (statements on the currency account(s)) for the date specified in the address;

- additional replenishment (deposition) by commercial banks of the currency means transferred to correspondent accounts of National Bank is forbidden;

- the currency means transferred to correspondent accounts of National Bank according to this resolution are not considered when calculating of the standard rate of ORT established by National Bank;

- conditions of interest-free placement of currency means of the commercial banks deposited on accounts of National Bank are established;

- the expenses of National Bank connected with maintenance of accounts including accounts on which negative interest rates are applied, become covered by commercial banks. Expenses will be levied from commercial banks in national currency, the payments/write-offs of such expenses expected on the official rate date.

2. Partial conclusion of currency funds from the account (ov) of the commercial banks deposited on accounts of National Bank is forbidden. Commercial banks need to transfer funds to other accounts within the term of the placement established by this resolution or after its expiration, only in full.

3. In case of non-realization of money transfer by commercial banks into other accounts in time of placement, the established by this resolution, National Bank reserves the right applications of penalties. Establish penalties in the amount of discount rate of National Bank on the amount of somovy equivalent of currency means counted on the official rate of National Bank for each day of delay.

4. The National Bank reserves the right unilaterally to make changes to the size of penalties.

5. Transfer of the currency means of commercial bank deposited on accounts of National Bank shall be made only on the correspondent accounts of commercial bank opened in other foreign corresponding banks. It is forbidden to make transfer of the currency means of commercial bank deposited on accounts of National Bank for benefit of the third parties. Implementation of the transfer of currency funds from accounts of National Bank to the financial credit institutes registered in offshore zones which list is determined by National Bank is forbidden.

6. Transactions with the currency means of commercial banks transferred to correspondent accounts of National Bank according to this resolution are performed only via bank transfer.

7. UBUO, UBR, by UDKO according to regulatory legal acts of the Kyrgyz Republic to carry out work on opening of currency accounts for commercial banks in National Bank based on the corresponding requests from commercial banks.

8. UDKO bring this resolution to the attention of structural divisions of National Bank and commercial banks performing activities in the Kyrgyz Republic.

9. This resolution becomes effective from the date of acceptance.

10. To impose control of execution of this resolution on the vice-chairman of National Bank of the Kyrgyz Republic Zhenish N.

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