ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of June 28, 2019 No. 459

About modification and amendments in the orders of the Government of the Republic of Kazakhstan of April 19, 2016 No. 234 "About some measures of the state support of private entrepreneurship" and of December 11, 2018 No. 820 "About some questions of ensuring long-term tengovy liquidity for the solution of task of available crediting"

The government of the Republic of Kazakhstan DECIDES:

1. Bring the following changes and amendment in some decisions of the Government of the Republic of Kazakhstan:

1) ceased to be valid according to the Order of the Government of the Republic of Kazakhstan of 31.12.2019 No. 1060;

2) in the order of the Government of the Republic of Kazakhstan of December 11, 2018 No. 820 "About some questions of ensuring long-term tengovy liquidity for the solution of task of available crediting":

To be reworded as follows the mechanism of crediting of priority projects approved by the specified resolution according to appendix 6 to this resolution.

2. This resolution becomes effective after ten calendar days after day of its first official publication.

Appendix 1

to the Order of the Government of the Republic of Kazakhstan of June 28, 2019 No. 459

No. 1060 voided according to the Order of the Government of the Republic of Kazakhstan of 31.12.2019

Appendix 2

to the Order of the Government of the Republic of Kazakhstan of June 28, 2019 No. 459

No. 1060 voided according to the Order of the Government of the Republic of Kazakhstan of 31.12.2019

Appendix 3

to the Order of the Government of the Republic of Kazakhstan of June 28, 2019 No. 459

No. 1060 voided according to the Order of the Government of the Republic of Kazakhstan of 31.12.2019

Appendix 4

to the Order of the Government of the Republic of Kazakhstan of June 28, 2019 No. 459

No. 1060 voided according to the Order of the Government of the Republic of Kazakhstan of 31.12.2019

Appendix 5

to the Order of the Government of the Republic of Kazakhstan of June 28, 2019 No. 459

No. 1060 voided according to the Order of the Government of the Republic of Kazakhstan of 31.12.2019

Appendix 6

to the Order of the Government of the Republic of Kazakhstan of June 28, 2019 No. 459

Approved by the Order of the Government of the Republic of Kazakhstan of December 11, 2018, No. 820

Mechanism of crediting of priority projects

1. The total amount of financing by National Bank of the Republic of Kazakhstan of banks of the second level (further - BVU) and JSC Agrarian Credit Corporation (further - AKK) in 2018 - 2020 for support of the subjects of private entrepreneurship (further - SChP) performing activities in processing industry and agro-industrial complex will constitute up to 600 billion tenges.

2. Conditions of provision of means of BVU and AKK:

The National Bank of the Republic of Kazakhstan at the expense of own means and means which are in its management will perform acquisition of bonds of BVU and AKK on the amount to 600 billion tenges from repayment period to 7 years at the remuneration rates to 11% per annum.

BVU and AKK has the right to extinguish ahead of schedule the bonds issued by it on the conditions determined by the prospectus of release (bond issue condition) and approved with National Bank of the Republic of Kazakhstan.

The maximum limit of bonds acquisition on each BVU and AKK shall not exceed 70 billion tenges. In case of non-use of limit partially or completely BVU and AKK, unused limit can be redistributed in proportion among interested in BVU and AKK.

The raised and own funds of BVU and AKK shall be directed to financing of priority projects in the following directions:

1) conversion in agro-industrial complex to 100 billion tenges;

2) production in agro-industrial complex to 100 billion tenges;

3) processing industry and services to 400 billion tenges.

At the same time on crediting of the projects realized by subjects of small and medium business (further - MSB), will direct at least 100 billion tenges. For this purpose each BVU and AKK will provide financing of the MSB projects in the amount of at least 17% of total amount of the issued credits on the conditions established by this Mechanism of crediting of priority projects (further - the Mechanism).

BVU and AKK can grant loans under the SChP projects at the expense of own means, and also issue bonds for providing or recovery of funding for SChP loans.

In case of receipt of advance funding the period of application of funds, the bonds received from placement, shall not exceed 12 months from the date of their revenues to the account of BVU and AKK.

Purpose of the provided means - crediting of SChP performing activities in processing industry and agro-industrial complex for the purposes of investment and replenishment of current assets. Replenishment of current assets on renewable basis is allowed.

At the same time has the right to direct no more than 50% of the issued borrowing facilities within one project of the borrower to the purposes of replenishment of current assets of BVU and AKK. This restriction does not extend to financing of projects on production in agro-industrial complex.

3. Requirements to BVU and AKK performing issuance of credits under the terms of this Mechanism:

the minimum size of equity of BVU and AKK shall constitute at least 60 billion tenges;

BVU and AKK do not charge any fees, charges and/or other payments connected with the credit, except for:

1) the terms for crediting connected with change initiated by the borrower;

2) levied owing to violation(s) by borrowers - SChP of obligations according to credit agreements;

3) connected with carrying out independent assessment of subject of pledge, registration of the agreement of pledge and removal of encumbrance;

4) payments on settlement cash servicing.

Are not allowed refinancing from other bank, and also on purchase of shares.

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