According to the IMF staff mission’s final report on its visit to Kyrgyzstan, the majority of the suggested revisions to the National Bank statute that were aimed at implementing the 2020 Safeguards Assessment recommendations were rejected by the Kyrgyzstan parliament, AKIpress reported.
The new legislation now includes suitable procedures for recapitalization and profit sharing, which is a significant advance, but it does not include measures for winding down non-core central bank activities or a plurality of non-executive members of the National Bank Board and the Audit Committee.
These clauses must be included in the statute as soon as feasible since they are crucial to enhancing the central bank’s autonomy and governance.
The National Bank need to keep working to sell Keremet Bank and come up with a plan to wind down its Guarantee Fund holdings.
The IMF staff emphasized to the Kyrgyzstan Parliament the importance of enforcing strong restrictions on lending to unregulated businesses.
