A draft law on acquisition by the Cabinet of Ministers of the Kyrgyz Republic of a block of shares of Keremet Bank OJSC from the National Bank has been developed. The document was submitted to the Parliament.
The main purpose of the purchase is to eliminate the conflict of interest, when the National Bank simultaneously owns a commercial bank, and supervises the work of commercial banks. The International Monetary Fund has repeatedly mentioned this in its reports.
The Cabinet of Ministers expects that after the purchase of 97.45 percent of shares of Keremet Bank from the National Bank of the Kyrgyz Republic, it will receive an asset that will expand its ability to develop the economy by lending to priority sectors and implementing government programs.
The National Bank’s investments in Keremet Bank in 2018-2020 amounted to 8,216.5 billion soms. The authorized capital of the bank is 8.6 billion soms.
The market value of the block of shares of Keremet Bank owned by the National Bank is 7,126.4 billion soms. The Cabinet of Ministers is ready to buy out Keremet Bank for this amount. The difference between the investment and the market price of the shares will be the net loss of the National Bank.
- Since October 2018, the National Bank has become the main owner of the bank’s stake, whose share after the next issue in May 2019 amounted to more than 95 percent. Keremet Bank OJSC is the legal successor of rights, assets and liabilities of Rosinbank OJSC.
