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

of November 28, 2008 No. 216

About approval of Rules of calculation, conditions of action of floating rate of remuneration on agreements of bank loan

For the purpose of implementation of article 39 of the Law of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan", the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations (further - the Agency) DECIDES:

1. Approve the enclosed Rules of calculation, condition of action of floating rate of remuneration on agreements of bank loan.

2. This resolution becomes effective after fourteen days after day of its first official publication.

3. To department of strategy and analysis (Abdrakhmanov N. A.):

1) together with Legal department (Sarsenov N. V.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in ten-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution to bring it to the attention of the interested divisions of the Agency, Consolidation of legal entities "The association of financiers of Kazakhstan".

4. To service of the Chairman of the Agency (Kenzhe A. A.) take measures for publication of this resolution in mass media of the Republic of Kazakhstan.

5. To impose control of execution of this resolution on the vice-chairman of the Agency Kozhakhmetov K. B.

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations of November 28, 2008 No. 216

Rules of calculation, condition of action of floating rate of remuneration on agreements of bank loan

1. These rules are developed according to article 39 of the Law of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan" and determine procedure for calculation and condition of action of floating rate of remuneration on agreements of bank loan, including on agreements of the mortgage loans concluded with physical persons (further - the agreement), for the banks of the second level and the organizations performing separate types of banking activity (further - bank).

2. In agreements the fixed or floating rate of remuneration by agreement of the parties is established.

3. The floating rate of remuneration is calculated as amount/difference of basic indicator and rate of interest spread, in nominal size estimated in percent points (further - interest spread).

4. The size of interest spread is calculated and established by bank independently and once in three years can be reviewed by bank, at the same time the next increase in the size of interest spread shall be no more, the amount of discontinuous increase of interest spread specified in the agreement.

When calculating interest spread the bank considers the expenses connected with issue of loan including administrative expenses, rate of the minimum reserve requirements, expenses on creation of special provisions (reserves), expenses on tax payment and other obligatory payments in the budget, expected return (ROE) calculated as the relation of the expected net income before payment of the income tax to equity (on balance).

Calculation of interest spread is determined by rules about general terms of carrying out transaction by bank.

5. As basic indicator the official rate of refinancing of National Bank of the Republic of Kazakhstan is used.

6. During validity the floating rate of remuneration changes depending on change of basic indicator, at the same time repayment of remuneration on loan is performed according to the floating rate of remuneration expected by bank repayment date.

7. The method of bringing to the client of information on change of rate of remuneration is determined by the agreement of the parties specified in the agreement.

8. The conditions specified by these rules are provided in the agreement.

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