  The first results of the solar dynamo model that allows for the diamagnetic
effect of inhomogeneous turbulence and the nonlocal alpha-effect due to the
rise of magnetic loops are discussed. The nonlocal alpha-effect is not subject
to the catastrophic quenching related to the conservation of magnetic helicity.
Given the diamagnetic pumping, the magnetic fields are concentrated near the
base of the convection zone, although the distributed-type model covers the
entire thickness of the convection zone. The magnetic cycle period, the
equatorial symmetry of the field, its meridional drift, and the
polar-to-toroidal field ratio obtained in the model are in agreement with
observations. There is also some disagreement with observations pointing the
ways of improving the model.
