RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of February 19, 2003 No. 4/2

About Regulations of activities of the microfinancial organizations in the territory of the Kyrgyz Republic

Having considered the "Regulations of activities of microfinance companies in the territory of the Kyrgyz Republic" developed based on the Law "About the Microfinancial Organizations in the Kyrgyz Republic", the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the enclosed "Regulations of activities of microfinance companies in the territory of the Kyrgyz Republic" and enact them from the moment of publication.

2. To legal department together with Management of methodology of supervision and licensing of NBKR to carry out state registration of "Regulations of activities of microfinance companies in the territory of the Kyrgyz Republic" in the Ministry of Justice of the Kyrgyz Republic.

3. To department of external and public relations of NBKR to publish "Regulations of activities of microfinance companies in the territory of the Kyrgyz Republic" after state registration in the Ministry of Justice of the Kyrgyz Republic.

4. To impose control of execution of this resolution on Abdybala тегин Suyerkul, the Board member of National Bank of the Kyrgyz Republic.

Approved by the Resolution of Board of National Bank of the Kyrgyz Republic of February 19, 2003 No. 4/2

Regulations of activities of the microfinancial organizations in the territory of the Kyrgyz Republic

1. General provisions

1.1. These rules regulate activities of the microfinancial organizations licensed and regulated by National Bank of the Kyrgyz Republic.

1.2 The purpose of activities of the microfinancial organizations (further - IFI) is provision to the population of available services in microfinancing for assistance in overcoming poverty, increase in the employment level, assistance to development of entrepreneurship and social mobilization of the population of the Kyrgyz Republic.

At the same time the microfinancial organization has the right to pursue also other aims determined by its constituent documents and which are not contradicting the current legislation of the Kyrgyz Republic.

1.3 The National Bank of the Kyrgyz Republic (further - National Bank) for the purpose of ensuring sustainable development of IFI and maintenance of trust of the population to their activities establishes the economic standard rates and requirements obligatory for accomplishment by microfinance companies (further - IFC).

1.4 IFIs can establish higher requirements for economic standard rates, according to the domestic policy of risk management, without breaking at the same time the values required for execution by regulations of National Bank of the Kyrgyz Republic.

1.5 Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 20.01.2016 No. 4/6

1.6 Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 20.01.2016 No. 4/6

1.7 IFIs draw up issue of the microcredits to borrowers the credit agreement according to requirements of the legislation, including under subsidiary or joint liability of group of persons.

1.8. IFIs shall perform financial accounting of the transactions and create the financial reporting according to requirements of regulatory legal acts of National Bank.

1.9. The microfinancial organization performs internal audit to check reliability of accounts, to check and estimate adequacy and efficiency of the internal control system according to regulatory legal acts of the Kyrgyz Republic. For this purpose the microfinance company (further - IFC) shall, and the microcredit company (further - MKK) / the mikrocreditny agency (further - MKA) can create the service of internal audit.

1.10. IFIs which have the system importance for the microfinancial sector are considered backbone. Criteria of the system importance are determined by regulatory legal acts of National Bank. The special mode of regulation and supervision established by National Bank is applied to systemically important IFIs.

1.11. For the purpose of these rules the wholesale credit is understood as the loan granted to financial credit institutions for the subsequent provision of the microcredits for the purpose of promotion of financial services in regions and supports of entrepreneurial activity.

IFI, the engaged wholesale crediting, is meant as IFI in which the share of the wholesale credits constitutes more than 70 percent from credit portfolio.

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