RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of October 29, 2018 No. 275

About approval of the list of transactions on non-market conditions which conclusion is the basis for decision making about reference of bank, branch of nonresident bank of the Republic of Kazakhstan, to category of insolvent banks, branches of nonresident banks of the Republic of Kazakhstan

According to the Law of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the following list of transactions on non-market conditions as a result of which bank, the branch of nonresident bank of the Republic of Kazakhstan (further - bank) incurs losses and which lead to further deterioration in financial condition of bank which conclusion is the basis for decision making about reference of the bank which is earlier referred to category of banks with the unstable financial position creating threat to interests of his depositors and creditors and (or) threat of stability of financial system to category of insolvent banks:

1) transactions, state programs except for performed within realization, corresponding to one of the following conditions:

the amount of the granted bank loan does not correspond to financial position and (or) the income of the borrower (taking into account co-borrowers if they are available), and also costs of mortgage providing;

the payment deferral on payment by the debtor of remuneration and (or) repayment of principal debt by it on banking activities exceeds one year;

the size of the interest rates levied from the debtor is significantly lower than market interest rates on similar banking activities;

2) issue of bank guarantees or guarantees according to obligations of debtors on the amount which does not correspond to financial position and (or) the income of the debtor, or without the right of the return requirement (regress) to the debtor;

3) transactions which lead to early satisfaction of requirements of large shareholders and (or) leading employees of bank;

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