National Bank of Kyrgyzstan has reduced requirements for the commercial banks on foreign currency loans converting into Som

Almaty. January 8. Silkroadnews - The National Bank of Kyrgyzstan reduced requirements to build the loan loss provision for potential losses when converting the foreign currency loans into the national currency.  
    The Board of the National Bank approved a decree that reduced requirements to establish the loan loss provision (LLP) for the commercial banks, including those carrying out operations in accordance with the principles of Islamic banking and finance.
There are changes in the requirements for LLP (from 25% to 5%) on conversion of the foreign currency loans into the ones in local currency (repeated restructuring) and for the repeated restructuring according to all other terms of the loan agreement (from 25% to 15%). These changes will take effect as of January 20, 2016.
Besides, earlier the requirements have been reduced on primary restructuring of loans from the foreign currency into those ones in local currency (from 5% to 2% LLP), and the Decree also provided for the banks not to create LLP when granting loans in national currency. The additional requirements were also introduced for LLP on loans granted in foreign currency.