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National Bank audit: profit decrease by 42.3 percent for year

In 2016, the profit of the National Bank decreased by 42.3 percent. The Audit Chamber reported on the results of the bank audit last year.

It was noted that as of December 31, 2016, 50 accounts of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic were opened in the National Bank. 32 of them were in national currency and 18 — in foreign currency.

The funds of the government of Kyrgyzstan as of January 1, 2016 amounted to 15.1 billion soms, and by the end of the year — 8 billion, that is, decreased by 7.1 billion soms, or 47 percent.

Over the past year, the National Bank received 3.8 billion soms of net profit, which is 42.3 percent less than in 2015. The profit fell due to a decrease of 2.9 billion soms in income from operations with precious metals and foreign currency. In accordance with the law on the National Bank, 70 percent of profits for 2016 (2.6 billion soms) were transferred to the state budget.

«The audit found out that on the basis of a joint decision of the National Bank and the Government, the National Bank does not accrue income on the balance of accounts of the Cabinet. In this regard, the audit noted the need to increase the efficiency of using free funds of the Kyrgyz government to replenish the state budget and reduce its deficit. The Ministry of Finance is instructed to study and consider jointly with the National Bank the issue of placement free state funds into income-generating assets," the conclusion says.