RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of July 30, 2025 No. 2025-P-12/38-3-(NPA)

About modification of some regulatory legal acts of National Bank of the Kyrgyz Republic concerning trade financing

According to Articles 5, "About National Bank of the Kyrgyz Republic" the Board of National Bank of the Kyrgyz Republic decides 9 and 64 constitutional Laws of the Kyrgyz Republic:

1. Make changes to the following resolutions of Board of National Bank of the Kyrgyz Republic (are applied):

- "About approval of the Provision "About Classification of Assets and the Corresponding Allocations to Reserve on Covering of Potential Losses and Losses" of July 21, 2004 No. 18/3;

- "About approval of the Instruction for determination of standards of sufficiency (adequacy) of the capital of the banks performing transactions according to the Islamic principles of banking and financing" of December 28, 2009 No. 51/4;

- "About some regulatory legal acts of National Bank of the Kyrgyz Republic" of December 28, 2009 No. 51/6;

- "About approval of the Instruction for determination of standards of sufficiency (adequacy) of the capital of commercial banks of the Kyrgyz Republic" of October 12, 2022 No. 2022-P-12/63-1-(NPA);

- "About approval of the Provision "About the Regulating Bank Reporting" of July 19, 2023 No. 2023-P-10/43-5-(NPA).

2. To legal management:

- from the date of receipt of the relevant documents within 3 (three) working days to publish this resolution on the official website of National Bank of the Kyrgyz Republic;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for entering into the State register of regulatory legal acts of the Kyrgyz Republic.

3. This resolution becomes effective since January 1, 2026, except for subitems 2 and 3 of Item 5 of Appendix to this resolution which become effective from the date of official publication of this resolution.

4. To management of methodology of supervision within 3 (three) working days from the date of official publication to bring this resolution to the attention of commercial banks, non-bank financial credit institutions, OYuL "Union of Banks of Kyrgyzstan", OYuL "Association of the Microfinancial Organizations", OYuL "National Association of Credit Unions and Cooperatives of Kyrgyzstan", JSC Garantiyny fond.

5. To department "Secretariat of Board" within 3 (three) working days from the date of adoption of this resolution to bring it to the attention of management of methodology of supervision, management of banking supervision, management of supervision of the non-bank organizations and legal management.

6. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising management of methodology of supervision.

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of July 30, 2025 No. 2025-P-12/38-3-(NPA)

Changes in some regulatory legal acts of National Bank of the Kyrgyz Republic concerning trade financing

1. Bring in the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Provision "About Classification of Assets and the Corresponding Allocations to Reserve on Covering of Potential Losses and Losses" of July 21, 2004 No. 18/3 the following change:

in the Regulations on classification of assets and the corresponding allocations to reserve on covering of potential losses and losses approved by the above-stated resolution:

- add Item 12.1 with the paragraph of the following content:

"Banks can classify off-balance obligations irrespective of issue currency in category "normal" if they correspond to the conditions specified in the subitem 1 of Item 30 of the Instruction for determination of standards of sufficiency (adequacy) of the capital of commercial banks of the Kyrgyz Republic approved by the resolution of Board of National Bank of October 12, 2022 No. 2022-P-12/63-1-(NPA).".

2. Bring in the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Instruction for determination of standards of sufficiency (adequacy) of the capital of the banks performing transactions according to the Islamic principles of banking and financing" of December 28, 2009 No. 51/4 the following change:

in the Instruction for determination of standards of sufficiency (adequacy) of the capital of the banks performing transactions according to the Islamic principles of banking and financing, approved by the above-stated resolution:

- state Item 29 in the following edition:

"29. This Instruction determines the following percentage sizes of factors of credit conversion for off-balance obligations:

1) factor of credit conversion - 10%:

- off-balance obligations according to which the bank has the right of unconditional response / cancellation at any time without prior notice of the client;

2) factor of credit conversion - 20% in case of observance of all following conditions at the same time:

a) the term of the off-balance obligation does not exceed one year;

b) the off-balance obligation has direct and direct connection with delivery or purchase of goods or services within international trade;

c) by the nature the off-balance obligation is self-destructing, and its repayment or execution is caused by provision of the documents relating to basic commercial transaction;

d) transaction is structured according to the commonly accepted international rules and practice of trade financing;

3) factor of credit conversion - 50%:

a) the off-balance obligations connected with the specific transaction (for example, the letter of credit guaranteeing to the customer indemnification in case of failure to carry out by the contractor of the obligations in the construction project and other similar obligations);

b) the short-term self-destructing obligations connected with trading activities (for example, the documentary credit provided with shipment of goods);

4) factor of credit conversion - 100%:

a) obligations on provision of asset;

b) credit substitutes (for example, general guarantees, reserve letters of credit, guarantees on acceptance), i.e. the documents (irrespective of the name) representing obligations in law of bank on payment of means to the third party if the client of bank on behalf of which the guarantee is issued or is issued the letter of credit, cannot pay the means issued in the advance payment to the third party under the contractual agreement or in this way;

c) sales agreements with the subsequent redemption and asset sale with the right of the partner to return asset in certain cases;

d) obligations on purchase of assets;

e) the other off-balance obligations which did not enter the previous categories.".

3. Bring in the resolution of Board of National Bank of the Kyrgyz Republic "About some regulatory legal acts of National Bank of the Kyrgyz Republic" of December 28, 2009 No. 51/6 the following change:

in Regulations on classification of assets and the corresponding allocations to reserve on covering of potential losses and losses when implementing transactions according to the Islamic principles of banking and financing approved by the above-stated resolution:

- add Item 42 with the paragraph of the following content:

"Banks can classify off-balance obligations irrespective of issue currency in category "normal" if they correspond to the conditions of factor of credit conversion in the amount of 20% specified in Item 29 of the Instruction for determination of standards of sufficiency (adequacy) of the capital of the banks performing transactions according to the Islamic principles of banking and financing, approved by the resolution of Board of National Bank of December 28, 2009 No. 51/4.".

4. Bring in the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Instruction for determination of standards of sufficiency (adequacy) of the capital of commercial banks of the Kyrgyz Republic" of October 12, 2022 No. 2022-P-12/63-1-(NPA) the following changes:

in the Instruction for determination of standards of sufficiency (adequacy) of the capital of commercial banks of the Kyrgyz Republic approved by the above-stated resolution:

Item 30 to state 1) in the following edition:

"30. This Instruction determines the following percentage sizes of factors of credit conversion for off-balance obligations:

1) low risk (factor of credit conversion - 20%) in case of observance of all following conditions at the same time:

a) the term of the off-balance obligation does not exceed one year;

b) the off-balance obligation has direct and direct connection with delivery or purchase of goods or services within international trade;

c) by the nature the off-balance obligation is self-destructing, and its repayment or execution is caused by provision of the documents relating to basic commercial transaction;

d) transaction is structured according to the commonly accepted international rules and practice of trade financing;

2) average risk (factor of credit conversion - 50%):

a) the off-balance obligations connected with the specific transaction (for example, the letter of credit guaranteeing to the customer indemnification in case of failure to carry out by the contractor of the obligations in the construction project and other similar obligations);

b) the short-term self-destructing obligations connected with trading activities (for example, the documentary credit provided with shipment of goods);

3) complete risk (factor of credit conversion - 100%):

a) obligations on issuance of credits;

b) direct credit substitutes (for example, general guarantees on the credits, reserve letters of credit, guarantees on acceptance), i.e. the documents (irrespective of the name) representing obligations in law of bank on payment of means to the third party if the client of bank on behalf of which the guarantee is issued or is issued the letter of credit, cannot pay the means issued in the advance payment to the third party according to the contractual agreement or in this way;

c) sales agreements with the subsequent redemption and asset sale, with the right of the partner to return asset in certain cases;

d) obligations on purchase of assets;

e) all other off-balance obligations which did not enter the previous categories.";

Appendix to the Instruction to state 2) in the following edition:

"Appendix

to the Instruction for determination of standards of sufficiency (adequacy) of the capital of commercial banks of the Kyrgyz Republic approved by the resolution of Board of National Bank of the Kyrgyz Republic of October 12, 2022 No. 2022-P-12/63-1-(NPA)

Assets

№	Articles	On balance	Credit risk, %	The weighed value
10	Banknotes and coins	0		0
10.1			0%
10.2			10%	0
10.3			20%	0
10.4			50%	0
10.5			100%	0
20	Cash assets in calculations	0		0
20.1			0%
20.2			10%	0
20.3			20%	0
20.4			50%	0
20.5			100%	0
30	Correspondent account in NBKR		0%
40	Correspondent accounts in commercial banks of the Kyrgyz Republic	0		0
40.1			0%
40.2			10%	0
40.3			20%	0
40.4			50%	0

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