Article 5-1. An organization specializing in improving the quality of loan portfolios of second-tier banks of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Home / RLA / Article 5-1. An organization specializing in improving the quality of loan portfolios of second-tier banks of the Law on Banks and Banking Activities in the Republic of Kazakhstan

1. The Government of the Republic of Kazakhstan is the sole shareholder of an organization specializing in improving the quality of credit portfolios of second-tier banks.

2. An organization specializing in improving the quality of second-tier banks' loan portfolios is entitled to carry out the following types of activities, which may result in losses:

1) issue shares to form the authorized capital, as well as bonds to finance their own activities;

2) buy back its own outstanding shares and bonds;

3) to assess the quality of assets, the rights of claims of banks and (or) legal entities that were previously banks, in order to make a decision on their acquisition;

4) to acquire from the National Bank of the Republic of Kazakhstan and banks doubtful and hopeless assets, other rights of claim and assets, to manage them, including through transfer to trust management, to own and (or) to realize them.

In case of transfer of rights (claims) from the National Bank of the Republic of Kazakhstan to an organization specializing in improving the quality of loan portfolios of second-tier banks, the consent of the borrower, the pledgor, the guarantor and other persons for such transfer is not required.;

5) to evaluate the quality of shares and (or) bonds issued by banks and (or) placed by banks, legal entities that were previously banks;

6) acquire shares and (or) participation interests in the authorized capital of legal entities, including legal entities, the rights of claims to which were acquired from banks and (or) legal entities that were previously banks, manage them, including by transferring them to trust management, own and (or) sell them;

7) acquire shares and (or) bonds issued and placed by banks, manage them, including by transferring them to trust management, own and (or) sell them;

8) lease (lease) property acquired and (or) obtained from banks and (or) legal entities that were previously banks, or use another form of paid temporary use of such property, transfer it to trust management;

9) perform operations on securitization of claims and other assets acquired from banks and (or) legal entities that were previously banks;

10) independently, as well as jointly with banks, create (acquire) an organization that acquires doubtful and uncollectible assets;

11) acquire from legal entities that were previously banks the rights of claims and assets, including shares and (or) participation interests in the authorized capital of legal entities, maintain, secure, manage them, including by transferring them to trust management, own and (or) sell them.

If, as a result of the transaction provided for in the first paragraph of this subparagraph, property is acquired in the amount of ten percent or more of the assets of an organization specializing in improving the quality of credit portfolios of second-tier banks, the decision to conclude such a transaction is made by the shareholder of this organization.

If, as a result of the transaction provided for in the first paragraph of this subparagraph, the rights (claims) of the creditor are transferred, the consent of the borrower, the pledgor, the guarantor and other persons to such transfer is not required. In this case, the identity of the new creditor is recognized as of no significant importance to the debtor.;

12) place money in securities and other financial instruments, as well as in second-tier banks, the National Bank of the Republic of Kazakhstan and the organization specified in paragraph 8 of Article 61-4 of this Law, on the terms of bank account and bank deposit agreements;

13) carry out financing on the terms of payment, urgency and repayment of banks and (or) legal entities that were previously banks;

14) to acquire the services of organizations on issues related to improving the quality of loan portfolios of second-tier banks;

15) implement special programs developed and approved by the Government of the Republic of Kazakhstan and (or) the National Bank of the Republic of Kazakhstan;

15-1) carry out debt restructuring on assets, including rights (claims), write off and (or) cancel in whole or in part the principal debt and (or) remuneration, commissions, penalties (fines, penalties), other debts, manage assets and realize them, recognize possible losses arising as a result of these actions;

16) other types of activities established by the Government of the Republic of Kazakhstan.

The procedure for the implementation by an organization specializing in improving the quality of credit portfolios of second-tier banks of the activities provided for in this paragraph, as well as the requirements for the assets acquired (acquired) by it and the rights of claim, is established by a regulatory legal act of the sole shareholder.

An organization specializing in improving the quality of second-tier banks' loan portfolios is recognized as a lender (lender) under a bank loan agreement and has all the rights and obligations established by a bank loan agreement.

IZPI's note! The fourth part of paragraph 2 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

An organization specializing in improving the quality of second-tier banks' loan portfolios has the right to involve collection agencies to collect and assign claims on bank loans with a delay in fulfilling obligations under a bank loan agreement of more than ninety consecutive calendar days, as well as to foreclose indisputably on money held in the borrower's bank accounts by submitting a payment claim in in accordance with paragraph 2 of Article 36 of this Law.

3. Excluded by the Law of the Republic of Kazakhstan dated 03/15/2025 No. 172-VIII (effective from 01/01/2025).

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

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Republic of Kazakhstan

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