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Fund of Problem Loans to be handed from the National Bank to the Government

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JSC Fund of Problem Funds will be handed from the National Bank to the Government. This was reported by the Minister of Justice Marat Beketayev at the plenary session of the Senate, presenting the draft law On introducing changes and amendments to some legislative acts of the Republic of Kazakhstan on improving civil, banking legislation and improving the business environment.

In terms of improving banking legislation, in order to implement instructions given by the Head of State in his Presidential Address on January 31, 2017, the bill provides measures to rejuvenate the banking sector. In particular, there is the expected handing of the JSC Fund of Problem Loans from the National Bank to the Government, � M. Beketayev said.

Recall, JSC Fund of Problem Loans was registered with the judiciary on January 11, 2012. The shareholding owner of common shares is the National Bank; the shareholding owner of privileged shares is the Committee for State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. The main objective of the Fund’s activities is implementation of measures directed at improving quality of loan portfolios of second-tier banks in accordance with the requirements of normative legal acts of the authorized bodies.

The main activities of the Fund are: buyout of bad loans from second-tier banks, management of STB treasury assets, and issuance of debt securities to finance their activities.

The bill was approved by Senate at the first reading.

Source: Government of the Republic of Kazakhstan

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