RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of September 19, 2007 No. 42/4

About new edition of the Provision "About Procedure for Holding the Auction on Placement of the State Treasurer Bills of Exchange of the Kyrgyz Republic through NBKR"

Having considered the project of new edition of the Provision "About Procedure for Holding the Auction on Placement of the State Treasurer Bills of Exchange of the Kyrgyz Republic through NBKR", the Board of National Bank of the Kyrgyz Republic decides:

1. Approve new edition of the Provision "About Procedure for Holding the Auction on Placement of the State Treasurer Bills of Exchange of the Kyrgyz Republic through NBKR" it (is applied).

2. To management of monetary transactions together with Legal department in accordance with the established procedure to carry out state registration of this resolution in the Ministry of Justice of the Kyrgyz Republic.

3. This resolution becomes effective from the moment of official publication after state registration in the Ministry of Justice of the Kyrgyz Republic.

4. From coming into force of this resolution to declare invalid:

- the resolution of Board of NBKR No. 20/1 of March 25, 1999. "About approval of the Regulations on procedure for holding the auction selling the state treasurer bills of exchange";

- the resolution of Board of NBKR No. 62/2 of October 13, 1999. "About modification and amendments in Regulations on procedure for holding the auction selling the state treasurer bills of exchange";

- the resolution of Board of NBKR No. 30/2 of June 13, 2007. "About new edition of the Regulations on procedure for holding the auction on placement of the state treasurer bills of exchange of the Kyrgyz Republic".

5. After publication of the registered regulation to Legal department to inform the Ministry of Justice of the Kyrgyz Republic on publication source (the name of the edition, its number and date).

6. To impose control of execution of this resolution on the vice-chairman of NBKR of Abdybala тегин Page.

 

 

Approved by the Resolution of Board of National Bank of the Kyrgyz Republic of September 19, 2007 No. 42/4

Regulations on procedure for holding the auction on placement of the state treasurer bills of exchange of the Kyrgyz Republic through NBKR

Terms and determinations

For the purposes of this provision the following terms and determinations are used:

Auction - form of the biddings of GKV in case of which the satisfaction of requests begins with the highest discounted prices and comes to an end in case of satisfaction of other requests on the conditions acceptable for the Issuer.

GKV - short-term, interest-free (discount) government securities (circulation period from 1 to 12 months, multiple 7, since 28 days till 1-month and 364 days on 12-month-old). Nominal value of one GKV is equal 100 som.

Additional (extra auction) placement of GKV - non-competitive sale of GKV.

The competitive request - the request, with indication of the price and quantity of GKV acquired at this price.

The non-competitive request - the request, with indication of quantity of GKV which is satisfied on the weighted average price which developed at the GKV auction.

The indirect participant of auction - the physical, legal entity, NBKR which is not working interest owner of auction, submitting purchasing requests GKV through the primary dealer.

Issue parameters - information on release: number of issue, issue amount, date of auction, date of issue, repayment date.

The primary dealer of NBKR - the commercial bank which signed the contract with NBKR on activities in the market of government securities as the primary dealer.

Working interest owner of auction - the primary dealer NBKR, financial credit institute, Social fund of the Kyrgyz Republic and the Agency on protection of deposits of the Kyrgyz Republic which signed with NBKR the relevant agreements on work in the market of the government securities placed through NBKR.

The authorized person - the employee of working interest owner of auction having appropriate authority or to which such powers fixed by the official letter, the power of attorney or the notice are delegated.

Stop-out price - the price on which the satisfaction of requests comes to an end. In case of excess of demand over supply it is the price in case of which all amount of release of GKV is placed; in case of excess of the offer over demand it is the price in case of which all submitted applications are satisfied.

Electronic trading system - the hardware and software intended for automation of process of the conclusion of civil transactions with GKV, accounting of securities and transactions with them.

The issuer - the Ministry of Finance of the Kyrgyz Republic acting on behalf of the Government of the Kyrgyz Republic as authorized body of national debt management.

1. General provisions

1.1. This provision is developed according to the Law "About National Bank of the Kyrgyz Republic" and "the Provision "About Release, Placement, the Address and Repayment of Government Securities of the Kyrgyz Republic" approved by the order of the Government of the Kyrgyz Republic of October 2, 2008 No. 556 and determines procedure for carrying out placement (sale) of the state treasurer bills of exchange of the Kyrgyz Republic by the National Bank of the Kyrgyz Republic (NBKR) in the primary market.

1.2. NBKR performs placement of GKV based on the agreement signed with the Issuer according to the Provision "About Release, Placement, the Address and Repayment of the State Treasurer Bills of Exchange of the Kyrgyz Republic" approved by the order of the Government of the Kyrgyz Republic of October 2, 2008 No. 556, this document.

1.3. Placement of GKV is performed on auction basis. The auction is held by method in case of which requests are satisfied at the prices ("the American auction") specified in them.

1.4. NBKR holds auction based on received from Emitent of the order and the global certificate on holding the auction on placement of GKV of the established forms. The structure and the document form on release and placement of GKV are established by Emitent's order, affirm and signed by the authorized person Emitenta. The documents necessary for holding the auction of GKV are transferred by Emitent to NBKR not later than 2 working days before date of auction.

1.5. Data on amount of issue of GKV are published by the Issuer on the website of the Issuer and in mass media. NBKR publishes parameters of issues of GKV on the NBKR website and in electronic trading system no later than one working day before date of auction.

1.6. The auction is held with use of electronic trading system. In case of impossibility of use of electronic trading system the auction is held by means of any other means (Excel, manual handling of data) allowing to hold auction.

1.7. The auction is held, with frequency which is determined by the Issuer. If day of holding the auction is non-working day in the Kyrgyz Republic, then the auction is held the next working day, but no later than one working day before date of issue of GKV.

1.8. The auction can be acknowledged as the Issuer cancelled, and issue not placed, in case:

- participations in auction less than three participants;

- if weighted average yield of the accepted requests exceeds the weighted average yield which developed at the previous auction for 15%.

1.9. The issuer has the right to reduce or increase amount of the announced issue in the following limits:

- the maximum satisfaction of requests is limited to 25% exceeding of amount of release of GKV;

- the minimum satisfaction of requests is limited to 25% of amount of release of GKV.

1.10. The issuer has the right to carry out additional (extra auction) placement of GKV over the announced issue amount. The procedure for carrying out additional (extra auction) placement of GKV is determined by the Issuer together with NBKR.

1.11. In case of incomplete placement of the announced release of GKV at the held auction, the Issuer has the right to repeatedly offer not placed part of the announced release amount at the next auction, by increase in earlier announced amount of release of the forthcoming biddings by amount of not placed issue of the taken place biddings.

1.12. In case repayment day drops out for the day announced by the Government of the Kyrgyz Republic non-working repayment of GKV is made the next working day. For such increase in circulation period of GKV recalculation of the size of the income (discount) is not made.

1.13. In case of approach of force majeure circumstances (swagger-mozhornykh of circumstances) completion dates of obligations on GKV are in proportion removed for the period of action of the circumstances specified swagger-mozhornykh. For unexpected increase in circulation period of GKV recalculation of the size of the income (discount) is not made.

2. Registration and submission of requests for auction

2.1. At auction working interest owners of auction have the participation right. Indirect participants of auction take part at auction, submitting applications through the primary dealer of NBKR.

2.2. The purchasing request GKV is submitted by working interest owner of auction to NBKR in documentary type according to appendix form 1 to this Provision. The request shall be sealed in opaque envelope. The working interest owner of auction can submit only one application for auction. In case of receipt from working interest owner of auction more than one request for one auction, it is not allowed to participation in this auction, and all applications submitted them for this auction are recognized invalid.

2.3. The request in documentary type shall be lowered in box with text "For requests for the GTsB auctions", NBKR located in office of general department on the first floor of the building, at the address: Bishkek, Ulitsa Umetaliyeva, 101. The working interest owner of auction shall register the application fact in the magazine of registration of requests.

2.4. The request shall be provided in NBKR in day of holding the auction till 12:00. The submitted application is irrevocable.

2.5. The request in documentary type is duplicated by the electronic application submitted through NBKR electronic trading system. In case of discrepancy of data of documentary and electronic requests data of the documentary request are considered as valid.

2.6. Each page of the request shall be certified by the authorized signature and seal of working interest owner of auction. The request shall contain the official name of working interest owner of auction, date of application, date of auction, number of the placed issue of GKV, the quantity of the bought securities, purchase price and cost of purchase.

2.7. The request of the primary dealer of NBKR may contain as the request on its own behalf (own request), and the aggregative request on behalf of the clients - indirect participants of auction (the client request). The request of working interest owner of auction, not being the primary dealer of NBKR, shall consist only of own request. The primary dealer cannot submit own application with the non-competitive offer.

2.8. Own request of working interest owner with competitive offers shall conform to the following requirements:

- quantity of lots - no more 5,

- arrangement of lots - in decreasing order of purchase price,

- the number of securities on each lot - multiply 100,

- the minimum quantity of securities in one lot at least 1000 pieces and if the announced amount of issue is less than 100'000 som, at least 100 pieces.

2.9. Total quantity of securities in own request of working interest owner, including competitive and non-competitive speak rapidly, shall not exceed the quantities of the placed securities, i.e. the total amount of own request face value shall not exceed the announced issue amount.

2.10. The client request with competitive offers shall conform to the following requirements:

- arrangement of lots - in decreasing order of purchase price,

- the number of securities on each lot - multiply 10,

- the minimum quantity of securities in one lot - at least 100 pieces.

2.11. In the client request with non-competitive offers the total number of securities according to all requests with non-competitive proposals of clients of working interest owner is specified.

2.12. The purchase price and cost of purchase shall be specified to within 1 (one) tyyyn.

2.13. The requests completed with violation of procedure for registration are recognized invalid and are not allowed to auction. At the same time, if violation of procedure for registration is allowed only in own request, then the client request is allowed to participation in auction.

2.14. NBKR notifies working interest owners whose requests were not allowed to auction, about not admission reasons no later than two working days after holding the auction.

2.15. NBKR provides confidentiality of the data specified in the request of the participant of auction, except as specified disclosures of information according to the procedure, established by the legislation of the Kyrgyz Republic.

3. Procedure for holding the auction

3.1. In case of holding the auction first of all requests with non-competitive offers are satisfied. Requests with non-competitive offers are satisfied within 30% of issue amount at par value. If the total amount of requests with non-competitive offers exceeds 30% of issue amount at par value, that their satisfaction is performed on pro rata basis.

3.2. The issue amount which remained after satisfaction of requests with non-competitive offers is distributed between requests with competitive offers. Lots of requests are ranged on purchase prices according to the procedure of their decrease, satisfied, since lot with maximum price, further - on the stop-out price descending before achievement. If on stop-out price it is given more than one request, that distribution of securities between these requests is made on pro rata basis.

3.3. If on stop-out price both own request of the primary dealer of NBKR, and the request of his clients are submitted, then the primary dealer of NBKR distributes securities between these requests on pro rata basis.

3.4. By results of auction the weighted average price and profitability of GKV are calculated by the following formulas:

where:

Р - weighted average price of GKV in som, pi - the prices of the satisfied lots, qi - amounts of the satisfied lots;

where:

Y - weighted average yield as a percentage, N - nominal value of GKV, P - weighted average price of GKV, T - GKV circulation period.

3.5. Processing of the requests allowed to auction is performed in day of holding the auction from 13:00 h to 15:00 h. No later than 15:00 h day of holding the auction preliminary results of auction are transferred to the Issuer on fax connection for adoption of the decision by the Issuer. The issuer can accept one of the following decisions: approve results of auction or recognize auction cancelled according to Item 1.8. this provision.

3.6. The issuer no later than 15:30 h day of holding the auction reports on fax connection of NBKR about the made decision. NBKR no later than 16:00 h day of holding the auction through electronic trading system informs working interest owners of auction on results of auction. In case of approval of results of auction summary results of auction are reported to working interest owners of auction: amounts of demand and placement, weighted average price and profitability, maximum price of requests and stop-out price, number of participants of auction; separately the quantity and cost of GKV purchased by it and his clients by results of participation in auction is reported to each working interest owner of auction.

3.7. Summary results of auction are published in periodicals and on the NBKR website.

3-1 Procedure for carrying out additional placement of GKV

3-1.1. The additional placement of GKV is performed by National Bank at the request of the Issuer.

3-1.2. Information on parameters of additional placement of GKV is published by National Bank of the Kyrgyz Republic on the website of National Bank of the Kyrgyz Republic and in electronic trading system.

3-1.3. The additional placement of GKV is made out of electronic trading system on the basis of documentary requests, according to appendix form 2 to this Provision. The request shall be sealed in opaque envelope. The procedure for giving and registration of requests for additional placement of GKV is similar to procedure for provision of requests at the GKV auction, according to item 2.3. this provision.

3-1.4. Working interest owners have the right of participation in additional placement of GKV. Indirect participants take part in additional placement of GKV, submitting applications through the primary dealer of National Bank of the Kyrgyz Republic.

3-1.5. Working interest owners - commercial banks can submit both own request, and the client request. Working interest owners - the Social fund of the Kyrgyz Republic and Agency on protection of deposits of the Kyrgyz Republic can submit only own application.

3-1.6. Working interest owners in day of carrying out additional placement of GKV submit the application to NBKR to 12:00 h. The submitted application is irrevocable.

3-1.7. The request shall be certified by the authorized signature and seal of working interest owner. The request without fail shall contain date of application, the official name of working interest owner, date of additional placement, registration number of release of GKV, quantity of the bought GKV, the price and cost of purchase. The price and cost of purchase shall be specified to within тыйын.

3-1.8. The requests completed with violation of procedure for registration are recognized invalid and are not allowed to additional placement. The National Bank of the Kyrgyz Republic notifies working interest owners whose requests were not allowed to additional placement of GKV about the reasons of their not admission no later than the next working day after carrying out additional placement of GKV.

3-1.9. NBKR provides confidentiality of the data specified in the request of working interest owner, except as specified disclosures of information according to the procedure, established by the legislation of the Kyrgyz Republic.

3-1.10. Own request of working interest owner shall be at least 100 000 som at par value, the number of securities shall be multiple 10. The maximum amount of own request at par value shall not exceed amount of additional placement of GKV on the corresponding release.

3-1.11. Restriction for the minimum amount of the application submitted from one client is not established. The maximum amount of the application submitted from one client shall not exceed amount of the announced additional placement of GKV.

3-1.12. If the demand amount according to the submitted applications of working interest owners exceeds amount of additional placement of GKV, that distribution of securities between these requests is made on pro rata basis.

3-1.13. Results of additional placement of GKV are brought to the attention of working interest owners no later than 15:30 h day of carrying out additional placement of GKV according to appendix form 4 this provision.

3-1.14. Summary information on results of the carried-out additional placement of GKV goes to the Issuer until the end of 17:30 h day of carrying out additional placement.

3-1.15. Summary results of additional placement of GKV are published in periodicals and on the website of National Bank of the Kyrgyz Republic.

4. Calculations

4.1. Calculations for results of auction are perfromed in date of issue of GKV, according to the agreements signed between NBKR and working interest owners of auction.

4.2. Working interest owners in day of release of GKV provide sufficient amount cash means, for payment of the won request at the GKV auction and/or additional placement of GKV.

4.3. Partial payment of the purchased GKV is not allowed. If the working interest owner of auction / additional placement has no sufficient means in full to make payment of the purchased GKV, its request is cancelled. In this case the working interest owner of auction / additional placement no later than 1 working day following behind day of release of GKV shall pay to the Issuer penalty in the amount of one percent from nominal value of the purchased GKV, but no more than one percent of the paid authorized capital of working interest owner of auction / additional placement. Before payment of penalty working interest owner of auction / the additional placement is not allowed on the subsequent auctions.

4.4. After completion of calculations for results of auction / additional placement of NBKR provides to working interest owner of auction / additional placement the document certifying the property right on purchased at auction / additional placement of GKV (appendix 2).

5. Final provisions

5.1. Risk management methods with the state treasurer bills of exchange are determined by transactions by internal regulating documents of participants of auction.

Appendix 1

to Polozheniyuo procedure for holding the auction on placement of the state treasurer bills of exchange of the Kyrgyz Republic through NBKR

 
                                                    Национальный банк
                                                Кыргызской Республики

                                Заявка

     Настоящим [наименование   участника   аукциона],   именуемое    в
дальнейшем "Участник",  выражает готовность купить ГКВ эмиссии №[номер
эмиссии]  на  проводимом  [дата  проведения  аукциона]   аукционе   на
следующих условиях:

     от своего имени:
+--------------------------------------------------------------------+
¦                         Собственная заявка                         ¦
+--------------------------------------------------------------------¦
¦ Номер лота ¦ Цена покупки (сом)¦ Количество ГКВ ¦Стоимость покупки ¦
¦            ¦                   ¦       (шт)     ¦      (сом)       ¦
+------------+-------------------+----------------+------------------¦
¦      1     ¦          2        ¦        3       ¦       4=2*3      ¦
+--------------------------------------------------------------------¦
¦                         Конкурентная заявка                        ¦
+--------------------------------------------------------------------¦
¦1           ¦                   ¦                ¦                  ¦
+------------+-------------------+----------------+------------------¦
¦. . . .     ¦                   ¦                ¦                  ¦
+--------------------------------------------------------------------¦
¦                      Неконкурентная заявка(1)                      ¦
+--------------------------------------------------------------------¦
¦            ¦                   ¦                ¦                  ¦
+--------------------------------------------------------------------+

     от имени своих клиентов(2):

+--------------------------------------------------------------------+
¦                       Клиентская заявка                            ¦
+--------------------------------------------------------------------¦
¦ Номер лота ¦ Цена покупки (сом) ¦ Количество ГКВ¦ Стоимость покупки¦
¦            ¦                    ¦      (шт)     ¦       (сом)      ¦
+------------+--------------------+---------------+------------------¦
¦      1     ¦         2          ¦       3       ¦        4=2*3     ¦
+--------------------------------------------------------------------¦
¦                       Конкурентная заявка                          ¦
+--------------------------------------------------------------------¦
¦ 1          ¦                    ¦               ¦                  ¦
+------------+--------------------+---------------+------------------¦
¦. . .       ¦                    ¦               ¦                  ¦
+--------------------------------------------------------------------¦
¦                       Неконкурентная заявка                        ¦
+--------------------------------------------------------------------¦
+--------------------------------------------------------------------+

     Участник ознакомлен с правилами проведения аукциона  и  принимает
на себя все обязательства, которые из них вытекают.

     -------------            --------------          -------------
      (должность)                (подпись)               (Ф.И.О.)

     дата                                                 МП.

     (1) Не заполняется Участником, являющимся первичным дилером НБКР
     (2) Заполняется только Участником,  являющимся первичным  дилером
НБКР, при наличии клиентской заявки
 

Appendix 2

to Regulations on procedure for holding the auction on placement of the state treasurer bills of exchange of the Kyrgyz Republic through NBKR

 
                                                    Национальный банк
                                                Кыргызской Республики

                              КВИТАНЦИЯ

     Настоящим Национальный банк Кыргызской  Республики  подтверждает,
что по итогам аукционов по продаже ГКВ,  состоявшихся [дата проведения
аукциона] [наименование участника аукциона] признается владельцем  ГКВ
следующих эмиссий:

+--------------------------------------------------------------------+
¦   №    ¦   Количество ГКВ   ¦     Сумма (сом)      ¦ Дата погашения¦
¦эмиссии ¦        (шт)        ¦                      ¦               ¦
¦        +--------------------+----------------------¦               ¦
¦        ¦Собственные¦ Клиента¦ Собственные ¦Клиента ¦               ¦
+--------+--------------------+----------------------+---------------¦
+--------+--------------------+----------------------+---------------¦
+--------------------------------------------------------------------+

     Начальник ОРРЦБ        -------------     ------------
                               (подпись)         (Ф.И.О.)

Appendices 3,4

See the Appendices 3,4 (5Kb In original language)

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info