Kazakhstan Ministry of Finance publishes draft rules for Fund of Problem Loans activities and asset acquisition requirements

The Kazakhstan Ministry of Finance has published a draft regulatory act to approve rules governing the activities of Joint-Stock Company “Fund of Problem Loans” and to set requirements for the assets and claims it can acquire, with the aim of formalising procedures and aligning the Fund’s operations with national legislation. The draft rules set out procedures for acquiring, valuing, managing and disposing of assets, including claims, pledged property and financial instruments, and describe asset-management mechanisms such as restructuring, collection, leasing, trust management and disposal. The proposed requirements establish criteria and limitations for selecting assets and claims, specify cases where acquisition is inadmissible, and include special conditions and exceptions, including for transactions approved by the Government of Kazakhstan or executed before 31 December 2017. The draft is prepared under Article 132 of Kazakhstan’s Law “On Banks and Banking Activity in the Republic of Kazakhstan”. Expected results are intended to apply from the date of implementation, supporting uniform procedures for the acquisition, management and sale of the Fund’s assets.