ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of October 13, 2021 No. 736

About modification and amendments in the orders of the Government of the Republic of Kazakhstan of December 24, 2019 No. 968 "About approval of the State program of support and business development "The road map of business-2025" and of December 31, 2019 No. 1060 "About some measures of the state support of private entrepreneurship"

The government of the Republic of Kazakhstan DECIDES:

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

1) in the order of the Government of the Republic of Kazakhstan of December 24, 2019 No. 968 "About approval of the State program of support and business development "The road map of business-2025":

in the State program of the support and business development "The road map of business-2025" approved by the specified resolution:

in Chapter 2 "Introduction":

in the Section "Main Terms and Determinations":

add with subitems 1-1) and 1-2) of the following content:

"1-1) International financial center "Astana" (further – MFTsA) – the territory in city boundaries of Nour-Sultan with precisely designated borders determined by the President of the Republic of Kazakhstan in which the particular legal regime in the financial sphere is effective;

1-2) stock exchanges of the International financial center "Astana" (further – the MFTsA stock exchange) – the legal entity in form of business of joint-stock company performing organizational and technical supply of the biddings by financial instruments in MFTsA;";

add with subitems 8-1) and 8-2) of the following content:

"8-1) "green" projects – the projects directed to increase in efficiency of use of the existing natural resources, decrease in level of negative impact on the environment, increase in energy efficiency, energy saving, mitigation of the consequences of climate change and adaptation to climate change determined on the basis of the approved classification (taxonomy) according to the ecological legislation of the Republic of Kazakhstan;

8-2) "green" taxonomy – the classification of the "green" projects which are subject to financing through "green" bonds and the "green" credits, developed by authorized body in the field of environmental protection and approved by the order of the Government of the Republic of Kazakhstan;";

10) to state the subitem in the following edition:

"10) the entrepreneur – the subject of small and (or) medium business, certain subjects of entrepreneurship performing the activities within the Program, the subjects of private entrepreneurship performing the activities within the Mechanism, the legal entities registered in the territory of MFTsA and also the legal entities realizing projects in the territory of the Republic of Kazakhstan at the expense of means of private equity funds;";

add with subitem 13-1) of the following content:

"13-1) rate of coupon remuneration – the amount of coupon remuneration expressed as a percentage which is established by the prospectus of bond issue and subject to payment on periodic basis to the bondholder for use of the money received by the issuer owing to placement of the bond;";

add with subitems 16-1), 16-2) and 16-3) of the following content:

"16-1) I will jam – cash amount, provided by private equity fund based on the loan agreement to the entrepreneur on the terms of urgency, the paid nature, recoverability, security and target use;

16-2) loan agreement – the written agreement signed between private equity fund and the entrepreneur under the terms of whom the private equity fund grants loan to the entrepreneur;

16-3) stock exchange – the legal entity created in form of business of joint-stock company which at least twenty five percent from total quantity of voting shares belong to National Bank of the Republic of Kazakhstan, the performing organizational and technical supply of the biddings by their direct carrying out with use of trade systems of this organizer of the biddings;";

add with subitems 19-1) and 19-2) of the following content:

"19-1) mezzanine agreement – the written agreement signed between private equity fund and the entrepreneur under the terms of whom the private equity fund provides mezzanine financing to the entrepreneur;

19-2) mezzanine financing – provision by private equity fund to the entrepreneur of subordinated loan with the right of its converting in shares or shares in the capital of the entrepreneur based on the mezzanine agreement;";

21) and 22) to state subitems in the following edition:

"21) subsidies – the periodical payments on non-paid and irretrievable basis paid by the financial agency to bank / the leasing company / private equity fund within subsidizing of entrepreneurs based on agreements of subsidizing;

22) subsidizing – the form of the state financial support of the entrepreneurs used for partial expense recovery, paid by the entrepreneur to bank / the leasing company / private equity fund as remuneration on credits/leasing in exchange for accomplishment in the future the certain conditions relating to operating activiies of the entrepreneur;";

add with subitem 22-1) of the following content:

"22-1) private equity fund – the organization created in the form of the legal entity and (or) other form of the organization of business activity without formation of legal entity according to the legislation of the Republic of Kazakhstan, foreign states and (or) MFTsA, performing attraction and accumulation of money and other property it is exclusive for the purpose of their further investment by direct or indirect participation in the authorized capital of legal entities and (or) other forms of organizational business activity without formation of legal entity, acquisition of financial instruments, provision of loans and different ways which are not prohibited by the legislation of the Republic of Kazakhstan. For the purposes of this Program private equity funds are understood as private equity funds and (or) the organizations controlled by them, shares and/or shares of participation of whom directly or indirectly belong to Kazyna Capital Management joint-stock company;";

in Chapter 4 "Purposes, tasks, target indicators and indicators of results of program implementation":

in the Section "Industry Support of Entrepreneurs/subjects of Industrial and Innovative Activities":

3 "Growth in volumes of the made products of processing industry" to state paragraph two of task in the following edition:

"For growth in volumes of the made products of processing industry subsidizing of rate of remuneration under credits/agreements of financial leasing / to mezzanine financing and (or) loans of banks/bank of development / the leasing companies / private equity funds, provision of state grants and partial guaranteeing the credits of banks/development bank issued to entrepreneurs will be performed.";

5 "Increase in availability to financing of the entrepreneurs performing activities in priority sectors of economy including development of family entrepreneurship" to state paragraph two of task in the following edition:

"For increase in availability to financing of entrepreneurs subsidizing of rate of remuneration under credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks/bank of development / the leasing companies / private equity funds, provision of state grants and partial guaranteeing the credits of banks/development bank issued to entrepreneurs will be performed.";

in Chapter 5 "Main directions, ways of achievement of effective objectives of the Program and adequate measures":

state Item 6 in the following edition:

"6. Portfolio subsidizing of part of rate of remuneration and partial guaranteeing on the credits/microcredits for subjects small, including microentrepreneurships, is provided on a grant basis and without industry restrictions, except for to activities of pawnshops, the microfinancial organizations and leasing companies.";

state Item 8 in the following edition:

"8. Financing of portfolio subsidizing of part of rate of remuneration and partial guaranteeing on the credits/microcredits is performed from means republican and/or local budgets.";

state Items 24 and 25 in the following edition:

"24. The second direction of the Program provides rendering the following measures of financial support to entrepreneurs/subjects of industrial and innovative activities:

1) subsidizing of rate of remuneration under credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks/bank of developments/funds of direct investments / leasing companies;

2) subsidizing of rate of remuneration on the credits of banks/development bank issued to subjects of entrepreneurship for the purposes of implementation of "green" projects;

3) subsidizing of part of markup on goods and parts of lease payment, constituting the income of Islamic banks;

4) subsidizing of rate of remuneration on the credits issued within ensuring long-term tengovy liquidity for the solution of task of available crediting in processing industry and services and also on conversion in agro-industrial complex;

5) subsidizing of rate of coupon remuneration on the bonds issued by subjects of entrepreneurship;

6) subsidizing of rate of coupon remuneration on the "green" bonds included in the official listing of stock exchange and (or) the "green" bonds issued according to acts MFTsA and included in the list of the MFTsA stock exchange;

7) partial guaranteeing on the credits of banks/development bank;

8) partial guaranteeing on the credits issued by banks within ensuring long-term tengovy liquidity for the solution of task of available crediting in processing industry and services and also on conversion in agro-industrial complex;

9) provision of state grants;

10) development of production (industrial) infrastructure;

11) creation of industrial zones.

25. Participants of the second direction of the Program are the effective entrepreneurs / subjects of industrial and innovative activities implementing and (or) planning to realize own projects without industry restrictions, except for:

1) projects in the field of trading activity (except the credits for the amount no more than 100 million tenges on replenishment of current assets);

2) projects of the entrepreneurs/subjects of industrial and innovative activities implemented on the types of activity specified in item 4 of article 24 of the Entrepreneurial code of the Republic of Kazakhstan (action of this subitem extends to the relations which arose since April 20, 2020);

3) activities of pawnshops, microfinancial organizations and leasing companies;

4) provisions of state grants and development of production infrastructure which are performed according to the priority sectors of economy specified in appendix 2 to the Program.";

add with Item 25-1 of the following content:

"25-1. Participants of the second direction of the Program are also the entrepreneurs/subjects of industrial and innovative activities implementing and (or) planning to realize "green" projects according to the classification (taxonomy) of "green" projects developed by authorized body in the field of environmental protection and approved by the order of the Government of the Republic of Kazakhstan according to the ecological legislation of the Republic of Kazakhstan.";

to state heading of the Section "Subsidizing of Rate of Remuneration under Credits/agreements of Financial Leasing of Banks/bank of Development / Leasing Companies" in the following edition:

"Subsidizing of rate of remuneration under credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks/bank of development / the leasing companies / private equity funds";

26, of 27, of 28, 29 and 30 to state Items in the following edition:

"26. Subsidizing of rate of remuneration is performed on the new credits / agreements of financial leasing / to mezzanine agreements and (or) the loans issued for implementation of new effective investment projects, and also the projects directed to upgrade, production expansion, replenishment of current assets and franchizing.

At the same time subsidizing of rate of remuneration on the credits / to mezzanine agreements and (or) loans on replenishment of current assets in the field of trading activity is performed on the credits / to mezzanine financing and (or) loans no more than 100 million tenges.

27. Subsidizing of part of rate of remuneration under credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks/bank of development / the leasing companies / private equity funds is also performed under the credits/agreements of financial leasing issued for projects implementation within the agreement on public-private partnership without industry restrictions, except for:

1) projects in the field of trading activity (except replenishment of current assets);

2) projects of the entrepreneurs/subjects of industrial and innovative activities implemented on the types of activity specified in item 4 of article 24 of the Entrepreneurial code of the Republic of Kazakhstan (action of this subitem extends to the relations which arose since April 20, 2020).

If on one project several agreements of subsidizing are signed, aggregate term of subsidizing is established from the moment of signing of the first agreement of subsidizing by the financial agency.

28. The credits / leasing transactions / transactions of mezzanine financing and (or) loans directed to refinancing of credits/agreements of financial leasing / mezzanine financing and loans are also subject to subsidizing.

29. Financing of subsidizing of part of rate of remuneration under credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks/bank of development / the leasing companies / private equity funds is performed from means republican and/or local budgets.

30. Conditions and procedure for subsidizing of part of rate of remuneration on credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks/bank of development / the leasing companies / private equity funds of entrepreneurs within the second direction of the Program are regulated by the Rules of subsidizing of part of rate of remuneration within the Program approved by the order of the Government of the Republic of Kazakhstan.";

add with the Section of the following content:

"Subsidizing of rate of remuneration on the credits of banks/development bank issued for the purposes of implementation of "green" projects

30-1. Subsidizing of rate of remuneration is performed on the new credits issued for implementation of "green" projects according to the determination of "green" projects provided by the ecological legislation of the Republic of Kazakhstan.

30-2. Subsidizing of part of rate of remuneration on the credits of banks/development bank is also performed on the credits issued for implementation of "green" projects within the agreement on public-private partnership.

30-3. Subsidizing on the credit issued for implementation of "green" projects for replenishment of current assets is allowed if crediting is performed within acquisition and (or) upgrade of fixed assets and (or) expansion of production, but no more than 20% of credit amount.

30-4. Financing of subsidizing of part of rate of remuneration on the credits of banks/development bank for implementation of "green projects" is performed from means republican and local budgets.

30-5. Conditions and procedure for subsidizing of part of rate of remuneration on the credits of banks/development bank of entrepreneurs, and also separate provisions on application of "green" taxonomy within the second direction of the Program are regulated by the Rules of subsidizing of part of rate of remuneration within the Program approved by the order of the Government of the Republic of Kazakhstan.";

state Item 32 in the following edition:

"32. Subsidizing of part of rate of remuneration under credits/agreements of financial leasing of banks/bank of development / leasing companies is also performed under credits/agreements of financial leasing without industry restrictions, except for:

1) projects in the field of trading activity (except replenishment of current assets);

2) projects of the entrepreneurs/subjects of industrial and innovative activities implemented on the types of activity specified in item 4 of article 24 of the Entrepreneurial code of the Republic of Kazakhstan (action of this subitem extends to the relations which arose since April 20, 2020);

3) activities of pawnshops, microfinancial organizations and leasing companies.";

state Item 35 in the following edition:

"35. Financing of subsidizing of part of markup on goods and parts of lease payment, constituting the income of Islamic banks, is performed from means republican and/or local budgets.";

state Item 41 in the following edition:

"41. Financing of subsidizing of rate of coupon remuneration on the bonds issued by subjects of entrepreneurship is performed from means republican and/or local budgets.";

add with the Section of the following content:

"Subsidizing of rate of coupon remuneration on the "green" bonds issued according to the legislation of the Republic of Kazakhstan and (or) acts of the International financial center "Astana"

42-1. Subsidizing of rate of coupon remuneration on the "green" bonds issued by subjects of entrepreneurship and included in the official listing of stock exchange, and (or) the "green" bonds issued according to acts MFTsA and included in the list of the MFTsA stock exchange is used for compensation of part of the expenses paid by issuers as remuneration for bonds and performed via mechanisms of interaction of the state with business.

42-2. Subsidizing of rate of coupon remuneration on "green" bonds is performed on the bonds issued by subjects of entrepreneurship for financing of implementation of "green" projects.

42-3. Financing of subsidizing of rate of coupon remuneration on the "green" bonds issued by subjects of entrepreneurship is performed from means republican and local budgets.

42-4. Conditions and procedure for subsidizing of rate of coupon remuneration on the "green" bonds issued by subjects of entrepreneurship are regulated by Rules of subsidizing of rate of coupon remuneration on the bonds issued by the subjects of entrepreneurship within the Program approved by the order of the Government of the Republic of Kazakhstan.";

state Item 47 in the following edition:

"47. Financing of partial guaranteeing on the credits of banks/development bank is performed from means of republican and/or local budgets.";

to state heading of the Section "Partial Guaranteeing on the Credits Issued within Ensuring Long-term Tengovy Liquidity for the Solution of Task of Available Crediting in Processing Industry and Services and also on Conversion and Production in Agro-industrial Complex" in the following edition:

"Partial guaranteeing under the credits/agreements of financial leasing issued within ensuring long-term tengovy liquidity for the solution of task of available crediting in processing industry and services and also on conversion and production in agro-industrial complex";

state Item 50 in the following edition:

"50. Partial guaranteeing under the credits/agreements of financial leasing issued within ensuring long-term tengovy liquidity for the solution of task of available crediting in processing industry and services and also on conversion and production in agro-industrial complex, is performed in accordance with the terms, provided by the Mechanism.";

state Item 52 in the following edition:

"52. Financing of measures of support in form of provision of state grants is performed at the expense of means of republican and/or local budgets.";

exclude the Sections "Subsidizing of Part of Rate of Remuneration Under Credits/agreements of Financial Leasing of Banks/bank of Development / Leasing Companies" and "Subsidizing of Part of Markup on Goods and Parts of Lease Payment, Constituting the Income of Islamic Banks";

state Items 110 and 111 in the following edition:

"110. Agreements on subsidizing of rate of remuneration on credits/agreements of financial leasing / to mezzanine agreements and (or) loans of banks / the leasing companies / private equity funds and to guaranteeing under credits/agreements of financial leasing of banks / leasing companies, prisoners within realization of DKB-2020, are applied in case of program implementation and are not subject to the repeated conclusion.

111. The financial agency performs monitoring of program implementation regarding subsidizing of rate of remuneration under credits/agreements of financial leasing / mezzanine agreements and (or) to loans, guaranteeing on the credits, provisions of service support of conducting business activity, the "Training of Top Management of Small and Medium Entrepreneurship" component and provision of state grants.";

state Item 116 in the following edition:

"116. The credits / leasing transactions / transactions of mezzanine financing and (or) loans of the entrepreneurs applying for receipt of the state support shall correspond to the following criteria:

1) the credit / the leasing transaction / transaction of mezzanine financing and (or) loan of the entrepreneur shall be directed to implementation of new investment projects, upgrade and expansion of productions, including replenishment of current assets, and also implementation of "green" projects, according to Program conditions;

2) subsidizing of rate of remuneration and partial guaranteeing cannot be performed on the credits / to leasing transactions:

directed to the redemption of shares, shares of the organizations, and also companies as property complex, except for the credits of development bank directed to the redemption of shares, shares of the organizations with the subsequent direction of funds for debt repayment before banks of the second level, according to the recommendation of State commission concerning upgrade of economy of the Republic of Kazakhstan;

issued by the state institutes of development, except for development bank and private equity funds;

to remuneration rates at which it was reduced the price at the expense of budgetary funds, except for the credits / leasing transactions / transactions of mezzanine financing and (or) loans of banks/bank of development / the leasing companies / private equity funds which rate of remuneration was reduced the price within the Program;

in the form of the overdraft;

3) the credit / the leasing transaction / transaction of mezzanine financing and (or) loan of the entrepreneur shall be issued in national currency.";

in appendix 1 to the specified Program:

in the Actions plan on implementation of the State program of support and business development "The road map of business-2025":

in the Section "Second direction: industry support of entrepreneurs/subjects of industrial and innovative activities":

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