Meeting of the Board of Directors.
On September 20, 2019, the 17th regular meeting of the Board of Directors of OJSC “Guarantee Fund” was held. All members of the Board of Directors – O. Kenzhetaev (Chairman of the Board of Directors), u Karabaev, Zh. Tashmatov, M. Satymkulov, A. Mamataliev.
The meeting was also attended by the representative of the NBKR, A. Sadyrov, M. Abakirov (Chairman of the Management Board of OJSC “Guarantee Fund”, Deputy Chairmen of the Management board of OJSC “Guarantee Fund” A. Kozhobaev and T. Tuloberdiev, member of the Management Board of OJSC “Guarantee Fund” U. Zhamalidinov, Risk Manager R. Kurmankozhoeva, and Head of the regional development department of OJSC “Guarantee Fund” K. Aaliev.
Decisions on various issues of the agenda, including the Regulation on the branch of OJSC “Guarantee Fund”; the election of new members of the Management Board; approval of the new organizational structure; the introduction of changes to the internal regulatory documents of the fund; taking into account changes in the shareholder structure; as well as activities as of August 31, 2019 were considered and taken into account.
A seminar on topic “Audit, Security Assurance, Quality Control, and Ethics was held at Park Hotel from Septemer 16 to 19, 2019. It was actualized within the framework of the project Enhancement of the profession of an accountant in the Kyrgyz Republic”, which is implemented by the Institute of Chartered Accountants in England and Wales (ICAEW) and the Public Association of Accountants and Auditors with the support of International Federation of Accountants (IFAC).
Nick Blackville, an internationally recognized specialist in the field of audit, conducted the seminar. Experts in the field of auditing and representatives of academic circles, universities of Bishkek, professionally interested in new trends in audit practice were among the participants. Leading employee of OJSC “Guarantee Fund” A. Aliev attended the seminar.
According to him, the speaker successfully combined theoretical lectures with practical examples. He acquainted the participants with the best practices of modern audit based on risk accounting, including those related to planning and conducting audit work according to professional standards, understanding of the need for quality control and the role of professional ethics, the current situation, as well as the following relevant issues:
- the impact of technology on financial accounting and reporting, e.g. artificial intelligence, Blockchain, cloud computing and data analysis;
- the impact of recently issued and amended IFRS on financial statements, for instance, IFRS-9, 15, and 16;
- Professional skepticism and assessment.
Today, September 20, 2019, entrepreneurs of our country celebrate their professional holiday. Over the period of independence, entrepreneurs have earned a worthy place in society. Approximately, half a million people work in various sectors and spheres of economy, providing more than a third of Kyrgyzstan’s GDP.
We congratulate all entrepreneurs on their professional holiday, and wish them more success in further development of production and implementation of business projects!
We are always ready to provide you with guarantee, advisory and other support!
Publications of OJSC “Guarantee Fund”.
An article on the experience of OJSC “Guarantee Fund” on applying IFRS-9 was published in the second issue of the scientific economic journal of KTU “Manas” “Reforma” for 2019. As it is known, IFRS is an important international system of universally recognized principles (standards) of accounting used in the preparation of financial statements of companies. The National Bank of the Kyrgyz Republic, in 2017, decided to introduce IFRS-9 to commercial banks of Kyrgyzstan.
The implementation of the standard in Kyrgyzstan has been actualized with the consulting support of international audit organizations for several years. The new standard “Financial Instruments” officially commenced on January 1, 2018.
Most of Kyrgyz banks have implemented IFRS-9 standard either by their own efforts or with the involvement of external specialists. OJSC “Guarantee Fund”, too, introduced IFRS-9 standards in 2018 with its own efforts. It is worth to note that the external audit for 2018 confirmed the exactness of the accounting and financial reporting in accordance with IFRS-9.
As a result of the implication of IFRS-9 by OJSC “Guarantee Fund”, the change in reserves amounted to 13.7%, and the impact on capital was 0.1 %, juxtaposed to the applied IFRS-39 standard. The fund’s specialists determined methods for assessing credit and guarantee risks as well as the probability of default in accordance with the principles of IFRS-9.
The standard provides transparent and reliable reports, increases the information content and practicality for users. It allows investors to adequately assess the risk of investments, to predict the performance of the fund on the basis of financial statements.
The Chairman of the Management Board, Malik Abakirov, during international conferences in Turkey and Kyrgyzstan, reported on the achievements of OJSC “Guarantee Fund” in providing guarantee support to entrepreneurs, the formation of a two-level system of guarantee funds, which was highly appreciated and recommended for implementation in the countries of Central Asia and the Caucasus by ADB, as well as introduction of the international standard IFRS-9.
Nowadays, the Kyrgyz Model of guarantee funds is being applied in other countries. Particularly, the first guarantee fund, according to the Kyrgyz model, was established in Tajikistan. Belarus and Uzbekistan are interested in the model.
The experience of the introduction and application of IFRS-9 standard by OJSC “Guarantee Fund”, as well as methods and approaches to assessing guarantee risks and expected credit/ guarantee losses, to leading financial institutions was reported by the management of OJSC “Guarantee Fund”.
The generalized experience of applying the international standard was the basis for an article published in English in the scientific economic journal of Kyrgyz-Turkish University “Reforma” (No. 2, 2019).
According to the authors, the methodology and approaches developed and used at OJSC “Guarantee Fund” can be implemented in guarantee funds in both developing and developed countries. It should be kept in mind that the results of the implementation of IFRS-9 will be affected by macroeconomic indicators, the state of the banking system, the quality of the loan portfolio, sectoral economic development, and other indicators of the host country of the guarantee fund.
The authors of the article are: Malik-Aidar Abakirov –Chairman of the Management Board of the Guarantee Fund, Syrgak Abakirov –expert of the Agency for Promotion and Protection of Investments of the Kyrgyz Republic, Bayalieva Erkin – Chairman of the Association of Guarantee Funds of the Kyrgyz Republic, and leading employees of OJSC “Guarantee Fund” – Emil Avazov, Makhabat Kazieva, Reina Kurmankozhoeva, Elmira Mamytova.
The article is available in the link below:
By the decree of the President of the Kyrgyz Republic S. Jeenbekov, 2019 was declared as the Year of Regional Development and Digitalization. The message of the President is that the economically stronger the regions, the stronger the country. The introduction of new technologies in economic process, social life, all of course, will be the key to the comprehensive development of the country.
OJSC “Guarantee Fund” makes a huge contribution to the development of regions by assisting SME’s in providing them with access to financial resources, implementing projects and support programs in the regions.
As for the digitalization issue, OSJC “Guarantee Fund” is also successfully implementing modern information technologies in its activities. There is a confidence that digitalization of the financial sector, including the introduction of mobile banking, electronic payments, is the key to its sustainable development. Of course, first of all, it depends on the development of digital technologies and services that ensure transparency, adaptability and effectiveness of interaction with the framework of information and communication technologies with consumers and service providers.
Speaking in practical terms, at present, OJSC “Guarantee Fund” is introducing an automation system into the fund. The main goal of creating this information system is to develop and implement a software package for automating business processes of activities of OJSC “Guarantee Fund”. The system also will allow consolidating information about borrowers and banks providing funds, as well as generating reports related to the activities of OJSC “Guarantee Fund”. The Information Systems Development Policy and Information Security Guide were also developed and adopted.
All employees are provided with desktop computers and Internet access to communicate, receive and send documents, files, and messages between the fund and regional office, corporate email is used among units within the head office.
The cloud file storage system, which is available for employees anywhere in the country with Internet access, allows to store information.
OJSC “Guarantee Fund” provides complete information on activities of the fund on its official website. Feedback function, which allows entrepreneurs and other users to contact and receive the necessary information is installed.
In order to attract and inform the public, the media, and potential customers, social network accounts on Facebook and Odnoklassniki.ru were created. It is planned to open official Instagram account as well as accounts in other media, which will significantly increase the availability of guarantee information for potential clients.
All measures to improve information systems are actualized according to generally accepted international and national standards. Specific attention is paid to ensuring information security and protecting information from unauthorized access, including guarantees of the authenticity of the transmitted information.