ORDER OF THE MINISTER OF NATIONAL ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

of September 18, 2023 No. 164

About approval of Rules of limiting determination of amount of external debt of the quasi-public sector

According to subitem 35-3) of Item 15 of the Regulations on the Ministry of national economy of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of September 24, 2014 No. 1011, I ORDER:

1. Approve the enclosed Rules of limiting determination of amount of external debt of the quasi-public sector.

2. To department of policy of management of obligations of the state and development of the financial sector of the Ministry of national economy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan to provide state registration of this order in the Ministry of Justice of the Republic of Kazakhstan and its placement on Internet resource of the Ministry of national economy of the Republic of Kazakhstan.

3. To impose control of execution of this order on the first vice-minister of national economy of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days after day of its first official publication.

Approved by the Order of the Minister of national economy of the Republic of Kazakhstan of September 18, 2023 No. 164

Rules of limiting determination of amount of external debt of the quasi-public sector

1. These rules of limiting determination of amount of external debt of the quasi-public sector (further - Rules) are developed according to subitem 35-3) of Item 15 of the Regulations on the Ministry of national economy of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of September 24, 2014 No. 1011, and determine procedure for limiting determination of amount of external debt of the quasi-public sector within the restrictions set by the Management concept public finances of the Republic of Kazakhstan till 2030 approved by the Presidential decree of the Republic of Kazakhstan of September 10, 2022 No. 1005 (further - the Concept), except for transactions on intra group financing and non-state loans provided with the state guarantee.

2. The basic concepts used in these rules:

1) external debt - the amount for certain date of the received and outstanding loan amounts of the subject of the quasi-public sector before nonresidents of the Republic of Kazakhstan;

2) the external loan - the loan relations in which the nonresident of the Republic of Kazakhstan acts as the creditor, and borrower - the subject of the quasi-public sector.

3. The limiting amount of external debt of the quasi-public sector is determined taking into account recommendations of the Commission concerning limiting determination of amount of external debt of the quasi-public sector under authorized body by state planning in the conditions of risk minimization of deterioration in indicators of stability of external debt of the country by means of effective management of portfolio of the loans attracted by the quasi-public sector.

4. Subjects of the quasi-public sector represent to the central authorized body on state planning till August 1 of the year previous planned forecast plans of borrowings and amounts of repayment of external debt for the planned financial year. Adjustment of plans of borrowings is performed on condition of modification of development plans.

The limiting amount of external debt of the subject of the quasi-public sector for the end of the corresponding financial year is determined by total value of amount of the external loans planned to attraction for the corresponding financial year and external debt for the beginning of year taking into account forecast repayment of external debt in the corresponding financial year taking into account recommendations of the Commission:

Dqe = Lye + Dqeb - With, where:

Dqe - limiting amount of external debt of the subject of the quasi-public sector for the corresponding financial year expressed at par value in tenge or in equivalent in US dollars;

Lye - external debt of the subject of the quasi-public sector for the beginning of year;

Dqeb - amount of the external loans of the subject of the quasi-public sector planned to attraction for the corresponding financial year;

With - the forecast of repayment of external debt of the subject of the quasi-public sector in the corresponding financial year.

The limiting amount of external loans of subjects of the quasi-public sector is determined according to the restrictions determined by the Concept.

If the cumulative declared amount of external loans of subjects of the quasi-public sector is more than limiting amount of external loans of subjects of the quasi-public sector (Lya> of Lp), then the limiting amount of external debt of subjects of the quasi-public sector in the corresponding financial year is determined by the work of specific weight of external loans of the subject of the quasi-public sector to limiting amount of external loans of subjects of the quasi-public sector:

LLim = W x Lp.

In this case the specific weight of external loans of the subject of the quasi-public sector is used by measure of cutting off and calculated by the following formula:

W = (Ld/Lya) x 100, where:

W - specific weight of external loans of the subject of the quasi-public sector;

Ld - the declared amount of external loans of the subject of the quasi-public sector;

Lp - limiting amount of external loans of subjects of the quasi-public sector for the corresponding financial year;

Lya - the cumulative declared amount of external loans of subjects of the quasi-public sector;

Limiting Lim-amount of external debt of the subject of the quasi-public sector.

5. The limiting amount of external debt of the subject of the quasi-public sector for the corresponding financial year affirms till December 1 of the year preceding planned.

6. The subject of the quasi-public sector based on the approved limiting amount of external debt independently distributes amount of external debt for the affiliated, dependent and other organizations which are part of its corporate structure, more than fifty percent of voting shares or share in the authorized capital of which belong to the main organization.

7. Limiting adjustment of amount of external debt of the quasi-public sector can be performed in case of change of the budget parameters or based on the corrected plans of borrowing of the quasi-public sector.

8. Subjects of the quasi-public sector independently provide execution of the obligations within external borrowing.

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