THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of September 29, 2025 No. 61

About approval of Rules of creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting

According to Items 1 and 3 of article 323 of the Tax Code of the Republic of Kazakhstan and the subitem 2) Item 3 of article 16 of the Law of the Republic of Kazakhstan "About the state statistics" Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

1. Approve Rules of creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting according to appendix 1 to this resolution.

2. Recognize invalid regulatory legal acts of the Republic of Kazakhstan, and also structural elements of some regulatory legal acts of the Republic of Kazakhstan according to the list according to appendix 2 to this resolution.

3. To provide to department of methodology and prudential regulation of the financial organizations in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

4. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

5. This resolution is subject to official publication and becomes effective since January 1, 2026.

Appendix 1

to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of September 29, 2025 No. 61

Rules of creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting

Chapter 1. General provisions

1. These rules of creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting (further - Rules) are developed according to Items 1 and 3 of article 323 of the Tax Code of the Republic of Kazakhstan, the subitem 2) of Item 3 of article 16 of the Law of the Republic of Kazakhstan "About the state statistics" and determine procedure for creation of provisions (reserves) according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting for banks (except for the bank which is national institute of development which controlling stock the national managing holding owns), branches of nonresident banks of the Republic of Kazakhstan and the organizations, the banking activities performing separate types based on the license for carrying out banking loan activities (further - the financial organizations).

2. In Rules the following concepts are used:

Short-reception of money - difference between the cash flows which are due to the financial organization according to the loan agreement, and cash flows which the financial organization expects to receive 1);

2) debt - the amount outstanding the borrower of the requirement in the form of principal debt, the added remuneration and (or) other payments in accordance with the terms of the loan agreement;

3) uniform financial assets - group of financial assets with similar characteristics of credit risk;

4) default - availability delayed (delayed) payment (payments) more than 90 (ninety) calendar days, or availability of one or more situations provided by this subitem. For the purposes of determination of default the financial organization accepts the following situations:

availability of overdue debt more than 90 (ninety) calendar days on other loans of the borrower in bank;

availability of overdue debt more than 90 (ninety) calendar days on loans in other banks, as indicator of deterioration in financial condition of the borrower;

suspension of charge of remuneration on loan in connection with deterioration in financial condition of the borrower;

write-off of part and (or) all outstanding amount of the borrower which is caused by significant increase in credit risk from the moment of provision of loan;

sale of loans with considerable discount;

forced restructuring of loan;

submission of the claim for recognition of the borrower by the bankrupt according to the Law of the Republic of Kazakhstan "About rehabilitation and bankruptcy" (further - the Rehabilitation act and bankruptcy);

the appeal of the borrower to court with the statement for recognition by his bankrupt according to the Rehabilitation act and bankruptcy;

other situations corresponding to the International Financial Reporting Standard 9 "Financial instruments" (further - IFRS 9) and provided by the Method of calculation of provisions (reserves) approved according to Rules;

5) individual financial asset - financial asset which gross carrying amount on reporting date exceeds 0,2 (zero whole two tenth) percent from equity according to data of the financial reporting, but at least fifty million tenges or financial asset which represents the requirement to the interconnected party.

Establishment by the financial organization in addition to the criteria provided by this subitem, additional criteria for reference of financial asset to individual is allowed.

Determination of other ratio of gross carrying amount of financial asset by the financial organization is allowed to equity, but no more 0,2 (zero whole two tenth) percent from equity.

For branches of nonresident banks of the Republic of Kazakhstan the equity is meant as the amount of the account of head office, reserves and results of activities of branch of nonresident bank of the Republic of Kazakhstan;

6) the partner - person under the agreement, not being the financial organization which under this agreement creates provisions (reserves);

7) the credit depreciated financial asset - financial asset on which the impairment signs corresponding to criteria of IFRS 9 are revealed;

8) credit scoring - assessment of creditworthness of the borrower and the probability of obligation fulfillment according to loan agreements expected credit losses, calculated by means of the mathematical and (or) statistical model based on quality and quantity characteristics;

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