ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of July 25, 2022 No. 517

About determination of conditions and mechanisms of crediting of subjects of industrial and innovative activities through financial institutions, and also the financial agent performing crediting of subjects of industrial and innovative activities

According to article 32 of the Law of the Republic of Kazakhstan "About industrial policy" the Government of the Republic of Kazakhstan DECIDES:

1. Determine:

1) conditions and mechanisms of crediting of subjects of industrial and innovative activities through financial institutions according to appendix to this resolution;

2) Fund of Development of the Industry joint-stock company the financial agent performing crediting of subjects of industrial and innovative activities.

2. Declare invalid the order of the Government of the Republic of Kazakhstan of February 2, 2016 No. 44 "About approval of conditions and mechanisms of crediting of subjects of industrial and innovative activities through financial institutions".

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

Appendix

to the Order of the Government of the Republic of Kazakhstan of July 25, 2022 No. 517

Conditions and mechanisms of crediting of subjects of industrial and innovative activities through financial institutions

Chapter 1. General provisions

1. In these conditions and mechanisms of crediting of subjects of industrial and innovative activities through financial institutions (further – conditions and mechanisms) the following basic concepts are used:

1) subjects of industrial and innovative activities – physical and (or) legal entities, the particular partnerships realizing the industrial and innovative projects or performing activities for promotion of domestic goods, works and services of processing industry on internal and (or) the foreign markets;

2) the financial agent – the legal entity determined by the Government of the Republic of Kazakhstan for realization of crediting of subjects of industrial and innovative activities through financial institutions;

3) financial institutions – legal entities, the organizations performing separate types of banking activities;

4) the audited financial reporting – the financial reporting which is result of the booked audit by person having the right to its accomplishment;

5) prudential standard rates – the economic restrictions set by authorized body on regulation, control and supervision of the financial market and financial institutions for financial institutions, branches of nonresident banks of the Republic of Kazakhstan, branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan, branches of insurance nonresident brokers of the Republic of Kazakhstan for the purpose of ensuring their financial stability and protection of consumer interests of financial services.

Chapter 2. Terms for crediting subjects of industrial and innovative activities through financial institutions

2. Terms for crediting subjects of industrial and innovative activities:

1) the amount of participation of Fund of Development of the Industry joint-stock company (further – the financial agent) in loan granting shall constitute no more than 85% (eighty five percent) of the amount of the estimate of the project;

2) crediting is provided for the term of no more than twenty years;

3) mortgage providing the applicant shall cover all amount of the required credit;

The period of development constitutes 4) 2 (two) years from the date of transfer of the credit for the account of the borrower;

5) technology and technical justification of project decisions.

3. Crediting is performed in national currency.

4. Crediting of subjects of industrial and innovative activities is performed for implementation of the industrial and innovative projects directed to creation of new productions, upgrade (modernization) and expansion of the operating productions, and also financial and economic improvement, improvement and (or) recovery of investment appeal of the operating and (or) idle productions on condition of their participation by provision of own personal or real estate, including money.

Chapter 3. The mechanism of crediting of subjects of industrial and innovative activities through financial institutions

5. For participation in crediting of subjects of industrial and innovative activities financial institutions file to the financial agent the corresponding petition and documents confirming compliance to the following requirements of the financial agent:

1) observance of the prudential standard rates established by authorized body on regulation, control and supervision of the financial market and financial institutions;

2) absence at financial institutions of overdue obligations to the financial agent for date of consideration of the application;

3) absence at financial institutions of high probability of bankruptcy or other financial reorganization, and also involvement into legal proceedings which worsen their financial condition;

4) availability of the approved audited financial reporting in the last two years or for last accounting periods (years) from the moment of formation of financial institutions.

In cases of representation by financial institutions of incomplete document package and (or) establishment of unauthenticity of the documents submitted by financial institutions, and (or) these (data) containing in them the financial agent sends the written notice to financial institutions with indication of the documents which are not conforming to requirements.

Reduction term in compliance with requirements of documents constitutes 5 (five) working days.

6. The financial agent considers documents of financial institutions for participation in the credit program of subjects of industrial and innovative activities in a month and makes the decision on approval of the conclusion of the loan agreement or its refusal to financial institutions.

7. In case of discrepancy of financial institutions to requirements of the financial agent, stipulated in Item 5 these conditions and mechanisms, the financial agent notifies financial institutions on the provisional solution about refusal for provision of opportunity to express to financial institutions line item according to the provisional solution in the conclusion of the loan agreement, and also time, date and the place (method) of carrying out hearing.

The notification on hearing goes at least in 3 (three) working days prior to completion of term, stipulated in Item 6 these conditions and mechanisms. Hearing is carried out no later than 2 (two) working days from the date of the notification.

By results of hearing the financial agent signs the loan agreement or makes motivated refusal in the conclusion of the loan agreement.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info