Article 17-1. Features of state participation in the settlement of a systemically significant issue of the Budget Code of the Republic of Kazakhstan

Home / Codes / Article 17-1. Features of state participation in the settlement of a systemically significant issue of the Budget Code of the Republic of Kazakhstan

1. The Government of the Republic of Kazakhstan has the right to participate in the settlement of systemically important banks in accordance with the banking legislation of the Republic of Kazakhstan by:

1) implementation of state investment projects aimed at settlement of systemically important banks by acquiring shares of a systemically important bank in settlement mode, or shares of a stabilization bank to which assets and liabilities of a systemically important bank in settlement mode are transferred (hereinafter referred to as a state investment project aimed at settlement of a systemically important bank);

2) providing a state guarantee of the Republic of Kazakhstan on loans for the settlement of a systemically significant bank as security for the fulfillment of obligations under a loan of last resort of a systemically significant bank or a stabilization bank to which the assets and liabilities of a systemically significant bank will be transferred.

2. A state investment project aimed at the settlement of a systemically significant bank is implemented on the basis of a decision of the Government of the Republic of Kazakhstan on the acquisition by the Government of the Republic of Kazakhstan or the national managing holding of shares of a systemically significant bank in settlement mode, or shares of a stabilization bank to which assets and liabilities of a systemically significant bank in settlement mode will be transferred, in in cases stipulated by the banking legislation of the Republic of Kazakhstan.

When implementing a state investment project aimed at regulating a systemically important bank, the following requirements are met::

1) providing full information by the authorized body for regulation, control and supervision of the financial market and financial organizations on the measures taken by it before making a decision on applying the settlement regime to a systemically important bank;

2) shares of a systemically important bank or a stabilization bank, to which the assets and liabilities of a systemically important bank that is in settlement mode will be transferred, are acquired by the Government of the Republic of Kazakhstan or the national management holding company at the expense of the republican budget and (or) other public funds.;

3) if the Government of the Republic of Kazakhstan or the national managing holding company alienates shares of a systemically important bank or shares of a stabilization bank to which the assets and liabilities of a systemically important bank were transferred, the funds received must be transferred to the republican budget.

It is not allowed for the Government of the Republic of Kazakhstan, the national managing holding company, to alienate shares of a systemically significant bank or a stabilization bank to which the assets and liabilities of a systemically significant bank have been transferred at a cost lower than their acquisition, taking into account the inflation targets set by the National Bank of the Republic of Kazakhstan for the period preceding the year of alienation of these shares, except in cases where the loss Losses incurred as a result of the alienation of such shares are subject to compensation in accordance with the procedure established by the Legislation of the Russian Federation., established by Article 100 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan".

The procedure for implementing state investment projects aimed at regulating a systemically important bank, as well as monitoring the implementation of such state investment projects, are determined by the authorized body for regulation, control and supervision of the financial market and financial organizations jointly with the National Bank of the Republic of Kazakhstan in coordination with the central authorized body for budgetary policy, the central authorized body for budget planning and the central authorized body for the budget execution authority.

3. The state loan guarantee for the settlement of a systemically significant bank is the obligation of the Government of the Republic of Kazakhstan to the National Bank of the Republic of Kazakhstan to fully repay the debt on the loan of the last instance of a systemically significant bank or a stabilization bank to which the assets and liabilities of a systemically significant bank will be transferred.

The provision of a state loan guarantee for the settlement of a systemically important bank is carried out on the basis of a resolution of the Government of the Republic of Kazakhstan by the central authorized body for budget execution.

4. The provisions and requirements of Chapter 28 of this Code do not apply to a systemically significant bank in settlement mode and a stabilization bank to which assets and liabilities of a systemically significant bank in settlement mode are transferred, applying for a state guarantee for the settlement of a systemically significant bank.

The provisions and requirements of Chapter 29 of this Code do not apply to government investment projects aimed at acquiring shares of a systemically significant bank in settlement mode and shares of a stabilization bank to which assets and liabilities of a systemically significant bank in settlement mode are transferred.

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