THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of June 18, 2020 No. 66

About modification and amendments in some regulatory legal acts of the Republic of Kazakhstan and suspension of action of separate regulations of some regulatory legal acts of the Republic of Kazakhstan concerning regulation of the financial market

According to the laws of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan", of July 4, 2003 "About state regulation, control and supervision of the financial market and the financial organizations", of March 19, 2010 "About the state statistics", of November 26, 2012 "About microfinancial activities" and the Presidential decree of the Republic of Kazakhstan of March 16, 2020 No. 286 "About measures for ensuring social and economic stability" Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

1. Approve the List of regulatory legal acts of the Republic of Kazakhstan concerning regulation of the financial market to which changes and amendment are made, according to appendix 1 to this resolution (further - the List).

2. In the resolution of Board of National Bank of the Republic of Kazakhstan of May 30, 2016 No. 144 "About establishment of prudential standard rates and other regulations and limits, obligatory to observance, for Islamic banks, their normative values and technique of calculations of prudential standard rates and other regulations and limits, obligatory to observance, for Islamic banks" (it is registered in the Register of state registration of regulatory legal acts at No. 13939, it is published on July 22, 2016 in information system of law of Ad_let) to suspend from March 30, 2020 to September 30, 2020 inclusive action of the following regulations:

in Normative values and technique of calculations of prudential standard rates and other regulations and limits, obligatory to observance, for the Islamic banks approved by the specified resolution:

Item 34, having determined that during suspension this Item is effective in the following edition:

"34. The extent of risk on one borrower (R), including bank, is calculated as the amount of requirements in type:

1) loans, deposits, receivables, securities (except for the investments specified in Item 8 of Standard rates);

2) the contingent and possible obligations calculated according to the Table of the contingent and possible obligations of bank weighed on degree of credit risk according to appendix 5 to Standard rates;

3) the securitized assets relating to borrowers on whom the bank has no written confirmation of authorized body on application of the framework approach of securitization;

4) securitization line items;

5) the credits according to transactions of securitization with special finance company of Fund of Stressful Assets joint-stock company;

6) the requirements for correspondent accounts to resident banks of the Republic of Kazakhstan and nonresident banks of the Republic of Kazakhstan weighed taking into account credit risk according to the Table of the assets of bank weighed on degree of credit risk of investments according to appendix 2 to Standard rates;

minus requirements to the borrower in type:

the assets financed by the funds raised under the agreement on the investment deposit;

the amounts of the reserves created according to IFRS, and also the providing amounts according to obligations of the borrower in type:

the deposits made available to bank as providing this obligation;

the government securities of the Republic of Kazakhstan issued by the Government of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan;

"AA" on the international scale of the Standard & Poor agency "s or rating assessment of similar level of one of other rating agencies is not lower than the government securities issued by the central governments of the foreign states having sovereign rating;

the affined precious metals;

guarantees of the Government of the Republic of Kazakhstan;

guarantees of joint-stock company "National welfare fund "Samruk-Kazyna", joint-stock company "National managing holding "Bayterek" and joint-stock company "National managing holding "Kazagro";

the securities issued by bank and provided as providing on the acquired bank to securities on which issuer is the joint-stock company "National welfare fund "Samruk-Kazyna", joint-stock company "National managing holding "Bayterek", or their affiliated organizations and on which at bank the right to unconditional collection of such providing is had.

On one borrower do not join in calculation of risk:

requirements to the Government of the Republic of Kazakhstan, National Bank of the Republic of Kazakhstan, joint-stock company "National welfare fund "Samruk-Kazyna", to joint-stock company "National managing holding "Bayterek", special finance company of Fund of Stressful Assets joint-stock company, the requirements of bank to the borrower which are written off from balance of bank, the requirement of bank to the borrower on which hundred percent of reserves according to IFRS are created;

requirements of bank to the affiliated organization;

requirements in the form of the money which is fees in guarantee or reserve funds of the clearing organization (the central partner), mid-flight fees, complete and (or) partial ensuring obligation fulfillment according to the bargains concluded in trade system of stock exchange by method of open tenderings and (or) with participation of the central partner;

requirements of bank to the legal entity, earlier being the subsidiary bank which performed restructuring and transaction on simultaneous transfer of assets and obligations to parent bank according to the Law on banks.";

Item 37, having determined that during suspension this Item is effective in the following edition:

"37. In cases when the total amount of requirements of bank to the borrower for date of their origin was in limits of the restrictions set by Standard rates, but afterwards exceeded the specified restrictions in connection with decrease in level of equity of bank no more than for 5 (five) percent within the last 3 (three) months, the standard rate of the maximum extent of risk on one borrower is considered executed.

In cases when the total amount of requirements of bank to the borrower for March 1, 2020 was in limits of the restrictions set by Standard rates, but afterwards exceeded the specified restrictions no more than on 0,05 (zero whole five 100-th) from the established standard rate in connection with increase in requirements of bank to the borrower because of increase in the weighted stock exchange rate of tenge to foreign currencies, the standard rate of the maximum extent of risk on one borrower is considered executed.

In the specified cases the bank immediately informs authorized body and assumes obligations on elimination of exceeding on reporting date and within the next 6 (six) months. If this exceeding is not eliminated in the specified time, exceeding of the standard rate of the maximum extent of risk on one borrower is considered as violation of this standard rate from the date of identification of the specified exceeding.";

Item 51, having determined that during suspension this Item is effective in the following edition:

"51. Standard rates set the following limits of open foreign exchange position:

1) limit of open foreign exchange position (long and short) on foreign currencies of the countries having sovereign rating is not lower "And" Standard & Poor agencies "s or rating of similar level of the Moody agencies" s Investors Service to both Fitch, and currency "euro", and also the affined precious metals in the amount of, not exceeding 12,5 (twelve whole five tenth) percent of size of equity of bank, except for are not lower than long foreign exchange position on foreign currencies of the countries having sovereign rating "And" the Standard & Poor agencies "s or the rating of similar level of other rating agencies, and currency "euro";

the limit of long foreign exchange position of foreign currencies of the countries having sovereign rating is not lower "And" the Standard & Poor agencies "s or the rating of similar level of other rating agencies, and currency "euro", in the amount of, not exceeding 7,5 (seven whole five tenth) than percent of size of equity of bank;

2) limit of open foreign exchange position (long and short) on foreign currencies of the countries having sovereign rating is lower "And" the Standard & Poor agencies "s or the rating of similar level of one of other rating agencies, in the amount of, not exceeding 5 (five) percent of size of equity of bank;

3) limit of currency net position in the amount of, not exceeding 12,5 (twelve whole five tenth) percent of size of equity of bank.";

the paragraph of the seventh subitem 4) of Management Item 9 on forming of provisions (reserves) under asset impairment of bank in the form of loans and receivables according to appendix 1, having determined that during suspension this paragraph is effective in the following edition:

"For the purposes of this subitem is not recognized the event which is objective confirmation of impairment of loan, the restructuring which is carried out for the purpose of implementation of state programs, the restructuring which is carried out with the delay in payment on loan granted during the period from March 16 to June 15, 2020 and also restructuring in connection with financial straits of the borrower on condition of absence at the borrower of delay of loan payments more than 30 (thirty) calendar days within the last 12 (twelve) months before introduction of emergency state and lack of the fact of carrying out the restructuring the last 12 (twelve) months prior to introduction of emergency state connected with financial straits of the borrower.";

2, having determined tables of the assets of bank weighed on degree of credit risk of investments according to appendix that during suspension this appendix is effective in edition according to appendix 2 to this resolution;

5, having determined tables of the contingent and possible obligations of bank weighed on degree of credit risk according to appendix that during suspension this appendix is effective in edition according to appendix 3 to this resolution.

3. In the resolution of Board of National Bank of the Republic of Kazakhstan of September 13, 2017 No. 170 "About establishment of normative values and techniques of calculations of prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank and Rules of calculation and limits of open foreign exchange position" (it is registered in the Register of state registration of regulatory legal acts at No. 15886, it is published on October 25, 2017 in Reference control bank of regulatory legal acts of the Republic of Kazakhstan):

in Normative values and techniques of calculations of the prudential standard rates and other regulations and limits, obligatory to observance, the size of the capital of bank approved by the specified resolution:

suspend from March 30, 2020 to September 30, 2020 inclusive action of the following regulations:

57, having determined Item parts two that during suspension this part is effective in the following edition:

"On one borrower do not join in calculation of risk:

requirements to the Government of the Republic of Kazakhstan, National Bank, the legal entity performing the redemption of mortgage loans of the physical persons which are not connected with business activity which hundred percent of shares belong to National Bank, joint-stock company "National welfare fund "Samruk-Kazyna", to joint-stock company "National managing holding "Bayterek", special finance company of Fund of Stressful Assets joint-stock company, the requirements of bank to the borrower which are written off from balance of bank, the requirement of bank to the borrower on which hundred percent of reserves according to IFRS are created;

requirements for securities according to which the state warranty of the Government of the Republic of Kazakhstan is had;

requirements of bank to the affiliated organization;

requirements of bank to the legal entity, earlier being the subsidiary bank which performed restructuring and transaction on simultaneous transfer of assets and obligations to parent bank according to the Law on banks;

requirements in the form of the money which is fees in guarantee or reserve funds of the clearing organization (the central partner), mid-flight fees, complete and (or) partial ensuring obligation fulfillment according to the bargains concluded in trade system of stock exchange by method of open tenderings and (or) with participation of the central partner.";

Item 58, having determined that during suspension this Item is effective in the following edition:

"58. In cases when the total amount of requirements of bank to the borrower for date of their origin was in limits of the restrictions set by Standard rates, but afterwards exceeded the specified restrictions in connection with decrease in level of equity of bank no more than for 5 (five) percent within the last 3 (three) months, the standard rate of the maximum extent of risk on one borrower is considered executed.

In cases when the total amount of requirements of bank to the borrower for March 1, 2020 was in limits of the restrictions set by Standard rates, but afterwards exceeded the specified restrictions no more than on 0,05 (zero whole five 100-th) from the established standard rate in connection with increase in requirements of bank to the borrower because of increase in the weighted stock exchange rate of tenge to foreign currencies, the standard rate of the maximum extent of risk on one borrower is considered executed.

In the specified cases the bank immediately informs authorized body on the fact of exceeding of restrictions and assumes obligations on elimination of exceeding on reporting date and within the next 6 (six) months, and in case of exceeding of restriction on the cumulative amount of the securitized credits transferred to special finance company of Fund of Stressful Assets joint-stock company - within the current and next quarters. If this exceeding will not be eliminated in the specified time, exceeding of the standard rate of the maximum extent of risk on one borrower is considered as violation of this standard rate from the date of identification of the specified exceeding.";

6, having determined tables of the contingent and possible obligations of bank weighed on degree of credit risk according to appendix that during suspension this appendix is effective in edition according to appendix 4 to this resolution;

suspend from March 30, 2020 to September 30, 2020 inclusive action of the Table of cash outflows and inflows of bank according to appendix 14, having determined that during suspension this appendix is effective in edition according to appendix 5 to this resolution.

4. In the resolution of Board of National Bank of the Republic of Kazakhstan of December 22, 2017 No. 269 "About approval of Rules of creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting" (it is registered in the Register of state registration of regulatory legal acts at No. 16502, it is published on March 15, 2018 in Reference control bank of regulatory legal acts of the Republic of Kazakhstan) to suspend from March 30, 2020 to September 30, 2020 inclusive action of the following regulation:

in Rules of creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting approved by the specified resolution:

Item 16, having determined that during suspension this Item is effective in the following edition:

"16. On individual financial asset availability of one or several next events which are objective confirmations of impairment is estimated:

1) availability of reasonable and confirmable information on considerable financial straits of the partner;

2) availability of overdue debt of the partner on principal debt and (or) remuneration over sixty calendar days;

3) restructuring of loan in connection with financial straits of the partner one and more time for the last 12 (twelve) months;

4) availability at the financial organization of reasonable and confirmable information on force majeur and (or) other circumstances which caused to the partner the essential material damage determined according to the Method of calculation of provisions (reserves) and (or) do not allow it to continue the activities, including information on deprivation or suspension of the license for carrying out banking and other activities, and also information on lack of labor activity or business activity of the partner;

5) reasonable and confirmable information on high probability of bankruptcy, reorganization of the partner based on reasonable and confirmable information and (or) involvement into legal proceedings of the partner which can worsen its financial condition;

6) death of the partner;

7) other events provided by IFRS 9 and established by the Method of calculation of provisions (reserves).

For the purposes of the subitem 3) is not recognized to part one of this Item the event which is objective confirmation of impairment of loan, the restructuring which is carried out with the delay in payment on loan granted during the period from March 16 to June 15, 2020 and also restructuring in connection with financial straits of the borrower on condition of absence at the borrower of delay of loan payments more than 30 (thirty) calendar days within the last 12 (twelve) months before introduction of emergency state and lack of the fact of carrying out the restructuring the last 12 (twelve) months prior to introduction of emergency state connected with financial straits of the borrower.".

5. In the resolution of Board of National Bank of the Republic of Kazakhstan of March 27, 2018 No. 62 "About approval of Rules of implementation of classification of assets and contingent obligations on the provided microcredits, references of assets on the provided microcredits to doubtful and hopeless, and also creations of provisions (reserves) against them" (it is registered in the Register of state registration of regulatory legal acts at No. 16858, it is published on May 14, 2018 in Reference control bank of regulatory legal acts of the Republic of Kazakhstan) to suspend from March 30, 2020 to September 30, 2020 inclusive action of the following regulation:

in Rules of implementation of classification of assets and contingent obligations on the provided microcredits, references of assets on the provided microcredits to doubtful and hopeless, and also creations of provisions (reserves) against them approved by the specified resolution:

Item 25, having determined that during suspension this Item is effective in the following edition:

"25. On individual asset on the provided microcredit availability of one or several next events which are objective confirmations of impairment is estimated:

1) availability of reasonable and confirmable information on considerable financial straits of the borrower;

2) overdue debt availability on principal debt and (or) remuneration over 60 (sixty) calendar days;

3) restructuring of asset on the provided microcredit in connection with financial straits one and more time for the last 12 (twelve) months;

4) availability at the microfinancial organization of reasonable and confirmable information on force majeur circumstances which caused to the borrower the essential material damage determined according to the Technique and (or) do not allow it to continue the activities, including information on lack of labor activity or business activity of the borrower;

5) reasonable and confirmable information on probability of bankruptcy, reorganization of the borrower based on reasonable and confirmable information and (or) involvement into legal proceedings of the borrower which can worsen its financial condition;

6) death of the borrower;

7) the events specified in the Technique.

For the purposes of the subitem 3) is not recognized to part one of this Item the event which is objective confirmation of impairment of the microcredit, the restructuring which is carried out with the delay in payment on the microcredit granted during the period from March 16 to June 15, 2020 and also restructuring in connection with financial straits of the borrower on condition of absence at the borrower of delay of payments on the microcredit more than 30 (thirty) calendar days within the last 12 (twelve) months before introduction of emergency state and lack of the fact of carrying out the restructuring the last 12 (twelve) months prior to introduction of emergency state connected with financial straits of the borrower.".

6. In the resolution of Board of National Bank of the Republic of Kazakhstan of December 28, 2018 No. 317 "About establishment of the factors influencing deterioration in financial position of bank and banking conglomerate and also approval of Rules of approval of the actions plan providing measures of early reaction, and the Technique of determination of the factors influencing deterioration in financial position of bank (banking conglomerate)" (it is registered in the Register of state registration of regulatory legal acts at No. 18186, it is published on January 24, 2019 in Reference control bank of regulatory legal acts of the Republic of Kazakhstan) to suspend from March 30, 2020 to September 30, 2020 inclusive action of the following regulations:

in Item 1:

the subitem 2), having determined that during suspension this subitem is effective in the following edition:

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