ORDER OF THE MINISTER OF TRADE AND INTEGRATION OF THE REPUBLIC OF KAZAKHSTAN

of March 29, 2024 No. 158-HK

About approval of conditions of implementation of separate types of activity of Export credit agency of Kazakhstan

According to subitem 10-2) of article 7 of the Law of the Republic of Kazakhstan "On regulation of trading activity" I ORDER:

1. Approve the enclosed conditions of implementation of separate types of activity of Export credit agency of Kazakhstan.

2. To provide to department of promotion of export of the Ministry of Trade and integration of the Republic of Kazakhstan in the procedure established by the legislation:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Ministry of Trade and integration of the Republic of Kazakhstan.

3. To impose control of execution of this order on the supervising vice-Minister of Trade and integration 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 Trade and integration of the Republic of Kazakhstan of March 29, 2024 No. 158-HK

Conditions of implementation of separate types of activity of Export credit agency of Kazakhstan

Chapter 1. General provisions

1. These conditions of implementation of separate types of activity of Export credit agency of Kazakhstan (further - Conditions) are developed according to subitem 10-2) of article 7 of the Law of the Republic of Kazakhstan "On regulation of trading activity" (further - the Law) and determine conditions of implementation of separate types of activity of Export credit agency of Kazakhstan (further - EKA).

2. In these Conditions the following determinations and concepts are used:

1) portfolio of the current insurance and warranty obligations - the aggregate liability according to all current agreements of insurance, inward reinsurance and guaranteeing on reporting date;

2) voluntary insurance - the insurance performed owing to declaration of will of the parties;

3) Export credit agency of Kazakhstan - the legal entity determined by the decision of the Government of the Republic of Kazakhstan which has the status of national institute of development in the field of development and promotion of non-oil export also performs activities according to the Law of the Republic of Kazakhstan "On regulation of trading activity" and the legislation of the Republic of Kazakhstan;

4) reinsurance - the activities and the related relations arising in connection with transfer by the reinsurer of all or parts of insurance risks in reinsurance, on the one hand, and acceptance of these risks by the reinsurance organization, on the other hand, according to the agreement of reinsurance signed between them;

5) cumulative reservoir of insurance and warranty obligations - the amount of equity and the cumulative size of the obtained state guarantees on export support;

6) the insurance contract - the agreement under which one party (insurer) shall pay insurance premium and other party (insurer) shall perform in case of loss occurrence insurance payment to the insurer or the other person for benefit of whom the agreement (beneficiary), within the amount (insurance sum) defined by the agreement is signed;

7) authorized body in the field of regulation of trading activity (further - authorized body) - the central executive body creating trade policy and performing management, and also cross-industry coordination in the field of trading activity;

8) guaranteeing transactions on promotion of non-oil export - measure of the state stimulation by means of provision of EKA of guarantee as ensuring obligation fulfillment of the domestic exporter;

9) preexport financing - the loan granted by banks of the second level, Development bank of Kazakhstan, to the domestic exporter under placement of EKA of the caused bank deposit for replenishment of current assets on the purpose of production of export goods, rendering services, performance of works under the export contract;

10) the state guarantee of the Republic of Kazakhstan on export support (further - the state guarantee) - the obligation of the Government of the Republic of Kazakhstan to EKA in accordance with the terms of the agreement of guarantee, fully or partially to repay its debt on insurance and warranty payments;

11) the export contract - the bilateral written agreement signed between the exporter and the foreign buyer, directed to export of domestic non-oil goods (works, services);

12) export trade financing - the loan granted by banks of the second level, Development bank of Kazakhstan, other legal entities performing leasing activities of financing to the foreign buyer or in its interests to emitting bank under placement of EKA of the caused bank deposit for payment under the export contract.

3. In case of excess of the size of portfolio of insurance and warranty obligations over cumulative reservoir of insurance and warranty obligations or change of parameter of financial stability of EKA towards deterioration and achievement of value of threshold from stated below parameter, taking measures, the insurance and warranty obligations directed to increase in cumulative reservoir due to increase in the authorized capital of EKA or provision of the state guarantee within the limit established by the law on the republican budget will be required.

At the same time, the equity ratio to the cumulative size of the obtained state guarantees shall not be less than one to five.

Cumulative reservoir of insurance and warranty obligations of EKA is equal to the amount:

1) equity;

2) cumulative size of the state guarantees.

4. Financial stability is determined on the basis of the parameter (coefficient) of EKA and its threshold value. The coverage ratio of cumulative reservoir of insurance and warranty obligations measures capability of EKA to extinguish the agreement obligations of insurance, reinsurance and guarantee due to cumulative reservoir of insurance and warranty obligations.

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