Amendments to the Law “On Compulsory Third Party Liability Insurance of Motor Vehicle Owners” signed
On March 17, 2020, President of the Kyrgyz Republic Sooronbai Jeenbekov signed the Law of the Kyrgyz Republic “On Amending the Law of the Kyrgyz Republic “On Compulsory Third Party Liability Insurance of Motor Vehicle Owners”.
The law was adopted by the Jogorku Kenesh on December 13, 2019 in order to protect the rights and legitimate interests of victims to recover damages as a result of a traffic accident during the operation of vehicles, as well as to protect the property interests of vehicle owners who insured their liability.
The Law provides for a temporary period of liability for non-fulfillment of the obligatory insurance obligation, depending on the category of the owner and (or) driver of the vehicle.
In particular, liability is established for failure to fulfill the obligation of compulsory insurance:
From April 1, 2020:
- For owners and (or) drivers of vehicles registered in other states;
- For vehicles owned by legal entities, including government bodies and local governments;
- For owners of freight vehicles with a total permitted maximum mass of more than 12 tons.
From January 1, 2021:
- For owners of freight vehicles with a total permitted maximum mass of less than 12 tons;
- For owners of vehicles used for the carriage of passengers.
From January 1, 2022 for owners and (or) drivers of vehicles registered in accordance with the legislation of the Kyrgyz Republic.
The law comes into force 15 days after the date of its official publication, March 17, 2020.
The Jogorku Kenesh passes the first, second and third readings of several bills
On March 18, deputies of the Jogorku Kenesh of the Kyrgyz Republic adopted the following bills:
The first reading:
- “On Amending Certain Legislative Acts of the Kyrgyz Republic (Non-tax Income Code, Civil Procedure Code)”.
- “On Amendments to the Tax Code of the Kyrgyz Republic”. The initiator is the Government, Resolution No. 24 of 01/23/20.
- “On Amendments to the Tax Code of the Kyrgyz Republic”. The initiator of the bill is MP Azamat Arapbaev. The draft law aims to improve the investment climate of the Kyrgyz Republic, consolidating the banking system of the Kyrgyz Republic by creating favorable conditions for foreign investors while channeling retained earnings of commercial banks to increase the authorized capital of commercial banks.
The second reading:
- “On amendments to some legislative acts of the Kyrgyz Republic (laws “On the exchange of credit information”, “On state registration of rights to real estate and transactions with it”, “On the Social Fund of the Kyrgyz Republic”, and Tax Code).”
The third reading:
- “On Amending Certain Legislative Acts of the Kyrgyz Republic (in the Tax Code, Code of Violations, and Budget Code)”.
A bill on the administration of income taxation of mining enterprises approved
On March 18, deputies of the Jogorku Kenesh considered the first reading of the draft law “On Amending the Tax Code of the Kyrgyz Republic”.
According to the Ministry of Economy and the State Committee for Industry, Energy and Subsoil Use, the bill will streamline the administration of income taxation for mining enterprises and ensure the return of processed products of ores and concentrates containing precious metals. It is proposed to increase the income tax rate for mining and processing enterprises by 3% in the case of the sale of gold-bearing ores and concentrates and to review the tax base of royalties when selling metal-containing ores and concentrates.
The National Bank has forbidden banks and FCO to impose fines and charge fees
On March 18, 2020, the Board of the National Bank of the Kyrgyz Republic adopted a resolution “On Interim Rules for Regulation of the Activities of Financial and Credit Organizations in Connection with the COVID 19 Pandemic”.
By this decision, the National Bank introduces temporary requirements for the activities of commercial banks and non-bank financial and credit organizations:
1) It is prohibited to charge and levy commissions and other payments related to the revision of the terms of loan agreements;
2) It is prohibited to impose and levy penalties, including forfeit (fine / penalty) on borrowers for failure to fulfill / improper performance of obligations stipulated by loan agreements;
3) It is recommended to grant a deferral of payments of loans issued for at least 3 months;
4) It is allowed not to aggravate the classification category of loans when changing the terms of loan agreements, including restructuring and monitoring for borrowers whose business activities were affected by restrictions imposed in connection with the prevention of the spread of coronavirus infection.
These measures will be valid until the appropriate decision of the regulator is made, depending on the economic and social situation in the country.
Decree of the Government of the Kyrgyz Republic of March 20, 2020 No. 92-r
In order to take operational measures to prevent the further spread of coronavirus infection in the Kyrgyz Republic, and implement economic measures in accordance with Articles 114 and 115 of the Labor Code of the Kyrgyz Republic, the laws of the Kyrgyz Republic "On the status of military personnel", "On the passage of service in law enforcement bodies of the Kyrgyz Republic ”, Articles 10 and 17 of the Constitutional Law of the Kyrgyz Republic“ On the Government of the Kyrgyz Republic ”:
1. To establish that March 22, 28, 29, April 4, 5, 7, 11, 12, 2020 are working days for state bodies, state institutions, executive bodies of local self-government (as agreed), indicated in the appendix to this order.
2. The heads of state bodies, state institutions, executive bodies of local self-government (as agreed), indicated in the annex to this order:
-. determine the list of employees (employees) who will be involved in labor activities on the working days specified in clause 1 of this order, in accordance with the legislation of the Kyrgyz Republic governing labor relations;
3. To recommend to commercial banks of the Kyrgyz Republic that provide services to budgetary institutions:
- declare March 22, 28, 29, April 4, 5, 7, 11, 12, 2020 as working days;
-. determine the list of employees who will be involved in labor activities on the working days specified in the second paragraph of this paragraph, in accordance with the legislation of the Kyrgyz Republic governing labor relations;
4. The control over the execution of this order shall be assigned to the relevant departments of the Office of the Government of the Kyrgyz Republic.