RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of September 3, 2015 No. 50/1

About approval of the Provision "About the Credit for Liquidity Maintenance"

According to articles 28 and 43 of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic", the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the Provision "About the Credit for Liquidity Maintenance" it (is applied).

2. To legal management:

- publish this resolution on the official site 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 from the date of official publication.

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

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of September 3, 2015 No. 50/1

Provision "About the Credit for Liquidity Maintenance"

I. General provisions

1. This Provision "About the Credit for Liquidity Maintenance" (further - the Provision) determines general terms and procedure for provision by National Bank of the Kyrgyz Republic (further - National Bank) the credit to the commercial bank of the Kyrgyz Republic having the license of National Bank (further - bank).

2. The credit for liquidity maintenance (further - the loan) is granted according to articles 6 and 17 of the constitutional Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic" and this Provision.

3. The loan is granted to bank for the purpose of protection of integrity and ensuring banking system stability, prevention of systemic risk, maintenance of bank liquidity and depositor protection.

4. The bank has no right to utilize the credit for payment of deposits (deposits) to officials. The National Bank can set restrictions for payment of deposits (deposits) to persons and affiliates of bank connected with bank.

5. The bank has no right to utilize the credit for payment of administrative expenses, including all types of remunerations/bonuses to bank employees. Besides, the National Bank has the right to make the decision on reducing the administrative expenses by bank.

6. The decision on loan granting, provision conditions, the number of prolongations, and also terms and volume of credit is accepted by Board of National Bank according to the recommendation of Committee on supervision of National Bank.

7. The loan is granted in national currency with respect for the general principles of crediting: urgency, paid nature, recoverability and security.

8. Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 31.05.2017 No. 21/16

9. The obligation on repayment of the loan is provided with pledge. Requirements to pledge, sufficiency amount (in percentage expression), to type and other parameters of mortgage providing are established by Board of National Bank according to the recommendation of Committee on supervision of National Bank.

10. For receipt of the credit the bank shall provide the following documents in National Bank:

1) the statement petition for loan granting with indication of the purpose of receipt of the credit;

2) board decision and the Board of directors of bank about receipt of the credit and about provision of assets and/or property in providing the required credit;

3) the copies of documents confirming the property right and/or rights to claim of the pledger regarding pledge;

4) the documents containing the characteristic of subject of pledge and its assessment;

4-1) actions plan which will reflect measures of bank for settlement of the available problems with liquidity and repayment of the required credit, approved by the Board of directors and Bank board;

5) the National Bank has the right to request other documents necessary for consideration of question of loan granting for bank.

11. The board of National Bank has the right to establish certain requirements which the bank shall perform before consideration of question of loan granting.

12. In case of acceptance by Board of National Bank of the decision on refusal in provision to bank of the credit, the National Bank in writing notifies bank on it.

II. Loan security

13. The obligation of bank on repayment of the loan is provided with pledge. The pledge subject provided in loan security cannot be pledged or repawned to the third party.

14. Pledge in type can act as loan security:

1) government securities of the Cabinet of Ministers of the Kyrgyz Republic and notes of National Bank (further securities);

2) deposits in National Bank or in other financial credit institution acceptable for National Bank;

3) gold and other precious metals;

4) foreign currency;

5) rights to claim on the loan portfolio of bank;

6) other asset types and property acceptable for National Bank, in the cases established by Board of National Bank.

14-1. As subject of pledge shares of persons under surveillance to National Bank of legal entities cannot act.

15. The subject of pledge shall belong to the pledger on the property right and not to be encumbered with other obligations.

16. Insufficient providing is the basis for refusal in provision of the credit amount requested by bank.

III. Procedure for provision and loan repayment

17. The credit can be issued by tranches (queues) within the credit line opened according to the signed Agreement on opening of credit line (further - the Agreement). Standard forms of the Agreement, Credit agreement of issue of credit/tranche and agreements of pledge are given in Appendices.

18. The credit line opens for the term determined by Board of National Bank by the recommendation of Committee on supervision of National Bank. Tranches within credit line are issued for the term which is not exceeding closing date of credit line. Closing date of credit line and/or date of final repayment of the trenches issued within credit line can be prolonged on board decision of National Bank.

19. Consideration of question of provision of tranche within credit line is performed based on the Request of bank for receipt of tranche (further - the Request). The request is provided in National Bank on paper. Provision of tranche is performed based on the prisoner between National Bank and bank of the Credit agreement about loan granting (tranche).

20. Repayment of the main amount of tranche and the added percent on it is made on the conditions determined in the Agreement and Credit agreements.

21. The National Bank, in case of non-execution of the obligations by bank on repayment of the loan, inappropriate use of the credit issued to bank according to this Provision can meet the requirements at the expense of the extrajudicial address of collection regarding pledge.

21.1. In case of inappropriate use of the means provided by National Bank and/or provision of unreliable information on mortgage providing, and also on use of the provided means, the National Bank has the right to apply the corrective actions provided by regulations of National Bank and also to impose requirement about early return of the provided means.

IV. Calculation of percent on the credit

22. The size of loan interest rate is established by Board of National Bank. Percent on the amount of each tranche of the credit are charged on formula of simple percent for the period of the actual use of the issued tranche, proceeding from the number of calendar days in year 360, on the following formula:

                                                                                            P = (C x I x T)/360/100, where:

                                                                                         Р - amount of percent on tranche;

                                                                                             With - the amount of tranche (som);

                                                                                     I - interest rate (in % per annum);

                                                                                        T - the term of use of tranche.

23. Calculation of the actual number of calendar days during which the bank used the issued tranche join the days off and holidays established by the legislation or announced by the Cabinet of Ministers of the Kyrgyz Republic.

V. Special conditions

24. The National Bank has the right at any time, at discretion, to perform activities of bank.

25. During operation of the credit line, the bank shall observe all requirements defined by the Agreement, Credit agreements and Agreements of pledge, and also decisions of National Bank.

26. In case of non-compliance by bank during operation of the credit line of the requirements determined by decisions of National Bank, the Agreement, Credit agreements, and/or Agreements of pledge, the National Bank has the right to suspend credit line and to demand early repayment of the provided trenches and percent added on them. In case of non-execution by bank of the requirement about early repayment of obligations, the National Bank can begin the procedure of the extrajudicial address of collection regarding pledge or in procedure without acceptance to charge off correspondent account in National Bank the amount necessary for debt repayment of bank.

VI. Responsibility and illegal actions

27. The National Bank does not bear responsibility for any losses which resulted from non-execution or partial execution by bank, loan granting conditions.

28. Loan granting from National Bank cannot be considered as acceptance by National Bank on obligations concerning bank.

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