Kyrgyzstan approves establishment of State Development Bank
The Kyrgyz parliament adopted in three readings a bill "On State Development Bank of the Kyrgyz Republic", the parliament said on Friday, according to KyrTAG.
"The Kyrgyz parliament in three readings on June 29 adopted a draft law "On State Development Bank of the Kyrgyz Republic", initiated by the Government of the Kyrgyz Republic," a statement said.
As explained by the press service, the law provides for the establishment of the State Development Bank of the Kyrgyz Republic, with a special status in the banking system in the form of joint stock company fully owned by the Government of the Kyrgyz Republic, i.e. the shareholder is the government in the person of the Fund for State Property Management under the Kyrgyz Government.
The purpose of this financial institution will be to ensure access business entities to credit from the economy in the medium and long-term and low-interest basis through commercial banks.
The following sources of funding are proposed: assets in Centerra Gold (sales, mortgage and other assets), loans under the guarantee and implementation of the Central Bank. The initial budget will be 50 million soms. It is noted that the bank's authorized capital is formed in the national currency through the funds distributed through the state budget and transferred to the bank by its shareholder, and approved by the parliament on the recommendation of the Government.
By law, the State Bank of Development will be give report to the parliament by 31 May of the year following the reporting period.
As a result of the tender held by State Development Bank the parliament no later than six months before the end of the fiscal year, shall consider and approve the auditing firm of recognized international standing and having experience of the audit of the central banks of at least five years.