Download Weekly news. NBKR press-release №40/2013 (October 07

Weekly news. NBKR press-release №40/2013 (October 07-12)
The National Bank appeals to the borrowers to resolve troubles with loan repayment within the legal
framework
During the events, which occurred in Karakol on October 7, 2013 there were borrowers among the
protesters who declared their requirements as they could not repay their indebtedness to the financial institutions for
a long time and applying aggravated political situation they appealed to honest borrowers not to comply with the
contractual requirements. Several dozens of people, who allegedly were the representatives of “People’s movement
for protection of the borrowers’ right in the Kyrgyz Republic”, appealed to stop operation of the micro financing
institutions and commercial banks in the country.
The National Bank of the Kyrgyz Republic appeals to the citizen not to be provoked. The issues connected with
indebtedness to the credit institutions can be resolved legally through negotiations with the creditors or through
court proceedings if no consensus is obtained or the facts of fraud are revealed on the part of the creditors.
Closing of banks and non-financial credit institutions will not resolve the issues with separate troubled borrowers,
moreover, it will result in breakdown of economic and financial systems. Financial institutions direct funds of their
depositors and investors for which they bear responsibility for the purposes of providing loans to the population.
Loans shall be repaid. The borrowers shall be aware of assumed obligations and repay a debt under loans.
Otherwise, credit institutions shall be entitled to take measures stipulated by the contractual obligations. In case of
any issues occurrence regarding loan repayment, the borrower can resolve thereof through negotiations directly with
the credit institutions, which provided a loan. There is no need to take one more loan in order to repay the existing
one. The conflict with creditors can be effectively resolved only within the legal framework.
The current situation in Kyrgyzstan is very negative precedent for investors putting up their funds in the economy of
the Kyrgyz Republic. Although the share of troubled loans is insignificant in the total volume of loans provided to
the population, currently, protests can become the obstacle for further development of the crediting sector and
therefore development of business and economy in the country as a whole. (As of September 1 the volume of
overdue loans in the banking sector constituted 5%, in the micro crediting sector – 2-3%). Meanwhile, the demand
for access to the micro crediting services is increasing day by day; the significant part of the population is likely to
be deprived of the possibility to receive necessary loan proceeds for development of business due to insignificant
number of people, who initiate protests.
The issues of loans repayment can be effectively resolved only within the legal framework, in the course of
constructive negotiations with the borrowers or in court.
REFERENCE
Currently, 23 commercial banks and 281 branches of the commercial banks are operating in the territory of the
Kyrgyz Republic.
Commercial banks, their branches and savings banks opened in the Issyk-Kul region function nominally.
Almost all commercial banks are represented in the Issyk-Kul region, except for Demir Kyrgyz International Bank
CJSC, Kazkommertsbank Kyrgyzstan OJSC and ACB Tolubay OJSC. Commercial banks opened 38 branches and
38 savings bank, the total volume of attracted deposits constitutes KGS 1.29 billion, the quantity of depositors
makes 52 118 persons, credit portfolio amounts to KGS 2.85 billion, the quantity of borrowers is 16 438 persons.
In case borrowers apply to the National Bank, all problem situations are considered with the commercial banks and
non-bank credit institutions thereby rendering assistance in resolving issues between creditors and borrowers within
the legal framework. 401 customers of the commercial banks and non-financial credit institutions applied to the
National Bank within 9 months of 2013. More than 50% of applications were resolved positively, in other words
troubled loans were restructured. Separate borrowers could not obtain consensus, their applications are still
considered.
Licenses/certificates of the following non-financial credit institutions were cancelled:
Certificate of accounting registration of the Osh branch of MCA “Umutum” № 34 as of May 26, 2003 for
micro crediting of individuals and legal entities, self-liquidation according to the decision of the founder dated
G.T. Nazaralieva, Chief of Documentation Management and Communications Department. Tel.: 66-91-26
Executed by A.T. Toktoralieva, External and Public Relations Division. Tel.: 61-45-78
1
Weekly news. NBKR press-release №40/2013 (October 07-12)
October 09, 2013, has been cancelled since October 12, 2013. Legal address: Kara-Kochkor village, KaraKuljinskiy district, Osh region.
Interbank payments
Interbank Payment Systems (IPS) indicators
Total IPS
Volume,
KGS
including
Clearing system
Volume,
Q-ty,
KGS
pcs
Q-ty,
pcs
Gross system
Volume,
Q-ty,
KGS
pcs
Indicators for the period from October 07 to October 12, 2013 (Reporting period)
Absolute
Value
17 172 320 241.57 73 132
2 271 913 787.95 69 223
14 900 406 453.62 3 909
100.0
13.2
94.7
86.8
5.3
Net positions
of
the
Common
Interbank
Processing
Center
0.2
1.4
1.3
1.5
0.0
0.0
Outgoing to
the Central
Treasury
14.6
10.6
26.2
11.2
12.8
0.9
Incoming to
the Central
Treasury
11.2
32.5
17.0
34.0
10.3
6.3
Outgoing to
the
Social
Fund
0.1
2.0
1.0
2.1
0.0
0.0
Incoming to
the
Social
Fund
1.8
22.0
14.0
23.2
0.0
0.0
Share in IPS
payments
(%)
100.0
including
(%) :
Average weekly indicators for the last month
Absolute
Value
17 268 915 124.09
54 360
1 737 135 715.73
50 776
15 531 779 408.36 3 584
Deviation of indicators for the reporting period from average weekly indicators for the last month
Absolute
Value
%
-96 594 882.52
18 772
534 778 072.22
18 447
-631 372 954.74
325
-0.6
34.5
30.8
36.3
-4.1
9.1
Elcart System indicators
As of
04.10.2013
12.10.2013
222 575
224 549
Number of POS-terminals:
- in banks
- in sale outlets
1170
653
517
1170
653
517
Number of ATMs
303
305
The total number of issued
cards
(excluding reissued)
G.T. Nazaralieva, Chief of Documentation Management and Communications Department. Tel.: 66-91-26
Executed by A.T. Toktoralieva, External and Public Relations Division. Tel.: 61-45-78
2