Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan raises starting prices and shortens timelines for electronic auctions of bank and microfinance assets

The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has adopted amendments to the rules governing auctions on the electronic trading platform used to sell bank and microfinance assets, including requirements on participants’ disclosure of information about property offered for sale. The changes adjust pricing floors, auction sequencing and timing, and introduce a requirement to conduct direct named sales via the platform, with the stated aim of improving the sale process for banks’ and microfinance organisations’ stressed assets. Under the amendments, the minimum price at the initial auction is increased to 100% of the object’s market value, from 50% previously. Where an auction is declared not held, minimum prices for subsequent auctions are set at 70% and 50% of market value; the number of unsuccessful auctions before an asset can be sold via direct named sale is increased from two to three. The time between posting auction announcements is reduced from 15 to 10 calendar days, and the interval between subsequent auctions following an unsuccessful initial auction is reduced from 30 to 15 calendar days. The amendments enter into force on 10 March.