On the ratification of the Loan Agreement (The first loan for financing development policy in the field of macroeconomic management and improving economic competitiveness) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development
The Law of the Republic of Kazakhstan dated June 13, 2016 No. 4-VI SAM
To ratify Loan Agreement (The first loan for financing development policy in the field of macroeconomic management and improving economic competitiveness) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on February 17, 2016.
President of the Republic of Kazakhstan N. NAZARBAYEV
LOAN No. 8553-KZ
Loan agreement (The first loan for financing development policy in the field of macroeconomic management and improving the competitiveness of the economy) between the REPUBLIC OF KAZAKHSTAN and BY THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT on February 17, 2016
LOAN AGREEMENT
Agreement dated February 17, 2016, concluded between the REPUBLIC OF KAZAKHSTAN (the "Borrower") and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the "Bank"), for the purpose of providing financing for the Development Program (as defined in the addendum to this Agreement). The Bank has decided on this financing based on, among other things: (a) the actions taken by the Borrower under the Program, as described in section I of Annex 1 to this Agreement; and (b) the Borrower's implementation of an adequate macroeconomic policy. The Borrower and the Bank have hereby agreed on the following:
ARTICLE I — GENERAL CONDITIONS; DEFINITIONS
1.01. The General Terms and Conditions (as defined in the addendum to this Agreement) are an integral part of this Agreement. 1.02. Unless the context otherwise requires, the terms used in this Agreement starting with capital letters have the meanings attributed to them in the general terms and conditions or the addendum to this Agreement.
ARTICLE II - LOAN
2.01. The Bank agrees to provide the Borrower with an amount equal to one billion US dollars ($1,000,000,000), as such, the amount may be periodically converted by Currency Conversion in accordance with the provisions of Section 2.08 of this Agreement (the "Loan") for the term and conditions set forth in this Agreement, or referenced therein 2.02. The Borrower has the right to withdraw the Loan funds to support the Program in accordance with Section II of Appendix 1 to this Agreement. 2.03. The one-time commission payable by the Borrower is one quarter of one percent (0.25%) of the Loan amount. The Borrower shall pay a one-time commission no later than sixty days after the effective date of this Agreement. 2.04. The reservation fee payable by the Borrower is one quarter of one percent (0.25%) per year of the outstanding Loan balance. 2.05. The interest payable by the Borrower during each Interest Period will be calculated at a rate equal to the reference rate for the Loan currency plus a Variable Spread.; provided that upon Conversion of all or any part of the principal amount of the Loan, the interest payable by the Borrower during the Conversion Period for such amount may be determined in accordance with the relevant provisions of article IV of the general terms and conditions. Notwithstanding the above, in the event that any part of the withdrawn outstanding Loan balance remains unpaid on time and is not paid within thirty days, the amount of remuneration payable by the Borrower will then be calculated in accordance with the provisions of section 3.02 (e) of the general terms and conditions. 2.06. The payment dates are March 1 and September 1 of each year. 2.07. The principal amount of the Loan is repaid in accordance with the repayment schedule set out in Appendix 2 to this Agreement. 2.08. (a) The Borrower may at any time request any of the following Loan Terms and conditions to be converted in order to ensure sound debt management: i) to change the Loan Currency of all or any part of the Loan principal, whether withdrawn or not, to an approved currency; (ii) a change in the interest rate basis applied to: (A) all or any part of the withdrawn and outstanding principal amount of the Loan from a variable rate to a fixed rate or vice versa; or (B) all or any part of the principal amount of the Loan, withdrawn and outstanding, from a variable rate based on a reference rate and a variable spread, a variable rate based on a fixed reference rate and a variable spread, or vice versa; or (C) to the entire principal amount of the Loan withdrawn and outstanding, from a variable rate based on a variable spread to a variable rate based on a fixed spread; and (iii) determining the limits of the variable rate or reference rate applicable to all or any part of the withdrawn and outstanding principal amount of the Loan by setting an upper limit the interest rate or the lower limit for the variable rate or the reference rate. (b) Any modification requested pursuant to paragraph (a) of this section, which is accepted by the Bank, will be considered a "Conversion" as defined in the General Terms and Conditions and will take effect in accordance with the provisions of Article IV of the General Terms and Conditions and the Conversion Guidelines. 2.09. Without prejudice to the provisions of section 5.08 of the general Terms and Conditions (renumbered in accordance with paragraph 5 of section II of the addendum to this Agreement and relating to Cooperation and consultations), the Borrower must promptly provide the Bank with such information regarding the provisions of Article II as the Bank may reasonably request from time to time.
ARTICLE III — THE PROGRAM
3.01. The Borrower declares his commitment to the Program and its implementation. For this purpose and in accordance with section 5.08 of the general Terms and conditions: a) The Borrower and the Bank should from time to time, at the request of one party or the other, exchange views on the Borrower's macroeconomic policy and progress made during the implementation of the Program; b) prior to each such exchange of views, the Borrower should submit to the Bank for review and comment a report on the results achieved during the implementation of the Program with such a degree of detail that the Bank may reasonably require; and c) without limiting the provisions of paragraphs (a) and (b) of this section, the Borrower must promptly inform the Bank of any situations that may significantly hinder the actual achievement of the objectives of the Program or the implementation of any actions taken under the Program, including any actions defined in section I of Annex 1 to this Agreement.
ARTICLE IV — LEGAL MEASURES OF THE BANK
4.01. An additional case involving a temporary suspension includes the following: the occurrence of a situation as a result of which it is practically impossible to implement the Program or a significant part of it. 4.02. An additional case leading to an acceleration of the suspension includes the following: the case described in paragraph 4.01 of this Agreement occurs and continues for a period of 60 days after the Bank notifies the Borrower of the occurrence of such an event.
ARTICLE V – ENTRY INTO FORCE; TERMINATION
5.01. An additional condition for entry into force is as follows: The Bank is satisfied with the progress made by the Borrower during the implementation of the Program and the adequacy of the Borrower's macroeconomic policy. 5.02. The deadline for entry into force of this Agreement is the date following the expiration of one hundred and eighty (180) days after the date of signing this Agreement.
ARTICLE VI - REPRESENTATIVES; ADDRESSES
6.01. The Borrower's representative is his Minister of Finance. 6.02. Borrower's address: Ministry of Finance Pobedy Avenue, 11 Astana 010000, Republic of Kazakhstan Telex: Fax: 265126 (FILIN) (7)(7172) 717785 6.03. Bank's address: United States of America Washington, DC, 20433 1818 H Street, N.W. International Bank for Reconstruction and Development Telex: Fax: 248423(MCI) or 1-202-477-6391 64145(MCI)
AGREED ______________, ________________, on the day and year specified above.
REPUBLIC OF KAZAKHSTAN
_____________________________________ Authorized representative F.I.O. Bakhyt Sultanov _______________
Position: Minister of Finance _________
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT _____________________________________ Authorized Representative Full name Francis Ato Brown ____________ Position: Permanent Representative
APPENDIX 1
Program actions; Availability of Loan funds
Section I. Actions taken under the Program
Actions taken within the framework of the Program. The actions taken by the Borrower under the Program include the following: 1. The Borrower has made the following fiscal adjustments: (a) The Borrower has revised the expenditure side of the Republican Budget for 2015, reducing it by almost eight percent, as evidenced by The Law of the Republic of Kazakhstan dated March 11, 2015 No. 290-V "On Amendments and Additions to the Law of the Republic of Kazakhstan "On the Republican Budget for 2015-2017" in order to prevent excessive growth of the non-oil deficit; and (b) The Borrower has amended the Order of the Minister of National Economy dated January 8, 2015 No. 9 "On Approval of the Rules and Deadlines for the development of the Forecast of socio-economic development" (also called the Rules for the Development of Medium-term Macroeconomic and Fiscal Policy), as evidenced by the Order of the Minister of National Economy dated July 21, 2015 No. 557 in order so that the definition of the term "non-oil deficit": (i) fully covers the consolidated budget (consisting of the Republican Budget, local budgets and the National Fund of the Republic of Kazakhstan); and (ii) appropriately included export/export customs duties on crude oil as part of oil revenues. 2. The borrower submitted to the Parliament a draft law "On Amendments and additions to certain Legislative Acts of the Republic of Kazakhstan on taxation and customs administration", as evidenced by the Resolution of the Government of the Republic of Kazakhstan dated August 29, 2015 No. 710 to increase revenues from non-oil revenues by lowering the VAT registration threshold from 30,000 to 3,234 monthly calculation indices (MCI) the equivalent of annual turnover. 3. The National Bank of the Republic of Kazakhstan (NBRK) has taken the following actions in accordance with the "Monetary Policy of the Republic of Kazakhstan until 2020": (a) Has switched to a floating exchange rate regime, as evidenced by the "Joint Statement of the Government of the Republic of Kazakhstan and the National Bank of the Republic of Kazakhstan on the transition to a new Economic Policy" dated August 20, 2015 and NBK press release No. 38 dated August 21, 2015; (b) Introduced a new NBK base interest rate as part of the transition to inflation targeting, as evidenced by NBK press release No. 43 dated September 2, 2015; and (c) Submitted to the Parliament the draft law "On Amendments and additions to certain Legislative Acts of the Republic of Kazakhstan on non-performing loans and assets of second-tier banks, financial services and activities of financial organizations and the National Bank of the Republic of Kazakhstan", as evidenced by the Resolution of the Government of the Republic of Kazakhstan dated May 29, 2015 No. 391, regulating approval of rules for conducting operations on the open market for the effective implementation of monetary policy. 4. The Borrower has adopted the following legislative acts in order to provide a legal framework for the insolvency of legal entities: (a) The Law of the Republic of Kazakhstan dated December 29, 2014 No. 269-V "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the fundamental improvement of business conditions in the Republic of Kazakhstan", which establishes the legal framework for insolvency legal entities; and (b) By-laws aimed at implementing the legal framework for the insolvency of legal entities mentioned in subsection 4 (a) above, in particular: (i) Order No. 92 of the Minister of Finance dated February 16, 2015, which provides for the reimbursement of taxes for insolvent legal entities and administrative expenses for bankruptcy; (ii) Order No. 131 of the Minister of Finance dated February 26, 2015, establishing the rights of administrators in rehabilitation and bankruptcy proceedings in the context of desk control over the activities of administrators in rehabilitation and bankruptcy procedures; (iii) Order No. 132 of the Minister of Finance dated February 26, 2015, defining the basis for the bankruptcy administrator's reporting on violations and sanctions; (iv) Order of the Minister of Finance dated March 18, 2015 No. 183, establishing the minimum basic commission of the bankruptcy administrator; (v) Order No. 130 of the Minister of Finance dated February 26, 2015, regulating the procedure for registration of bankruptcy administrators; and (vi) Order No. 178 of the Minister of Finance dated March 17, 2015, establishing the rights and procedures for conducting an electronic auction of seized assets. 5. The NBRK has issued revised prudential standards and reporting requirements aimed at more effective risk management by banks, in accordance with: (a) The revised provisions of Resolution No. 358 of the Board of the Financial Supervision Agency, as evidenced by Resolution No. 97 of the Board of the NBRK dated May 27, 2014, effective January 1, 2015 and aimed at to (i) review risk parameters in accordance with Basel III, (ii) increase the share capital of banks, and (iii) require the formation of conservation buffers in banks; and (b) Resolution No. 256 of the NBK Board of December 24, 2014, which requires banks to bring their procedures in line with IFRS 13 in order to provide market-oriented fair value disclosure, as well as to ensure a more consistent, periodic and electronically documented assessment of the collateral base. 6. In accordance with the Borrower's obligations to join the WTO, in particular, the provisions and rules of the Agreement on Trade-related Investment Measures, the Borrower submitted to Parliament a draft law "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan in connection with accession to the World Trade Organization", as evidenced by the Resolution of the Government of the Republic of Kazakhstan dated 11 September 2015, No. 775, prescribing minimum thresholds for local content in works and services. 7. The MNE has implemented mechanisms to assess the regulatory impact on the business by: (a) Adopting Rules for conducting regulatory impact analysis, as evidenced by the Order of the Minister of National Economy dated January 21, 2015 No. 32; and (b) the establishment of the Regulatory Policy Department under the Ministry of National Economy with adequate staffing in accordance with the order of the Executive Secretary of the Ministry of National Economy dated September 3, 2015 No. 44.8. The borrower has strengthened its competition protection policy by: (a) Amendments to the existing rules on compliance with anti-cartel requirements in (i) the Law of the Republic of Kazakhstan "On Competition" dated December 25, 2008 No. 112-IV and (ii) The Code of Administrative Offences of the Republic of Kazakhstan dated July 5, 2014 No. 235-V, with amendments and additions to both laws provided for by the Law of the Republic of Kazakhstan dated May 5, 2015 No. 312-V; (b) Adoption of Methods for conducting analysis and assessment of the competitive environment in the commodity market, as evidenced by the Order of the Minister of National Economy dated April 2, 2015 No. 303. 9. The borrower approved The Corporate Governance Code of JSC National Welfare Fund Samruk-Kazyna, as evidenced by the Resolution of the Government of the Republic of Kazakhstan dated April 15, 2015 No. 239.
Section II. Availability of loan funds
A. General provisions. The Borrower may withdraw the Loan funds in accordance with the provisions of this section and those additional instructions specified by the Bank in the notification to the Borrower. B. Allocation of Loan funds. The loan (with the exception of the amount that must be paid as a one-time fee) is allocated as a one-time tranche from which the Borrower can withdraw borrowed funds. The distribution of Loan amounts is shown in the following table:
Allocation of funds
The amount of the allocated loan (expressed in US dollars)
One-time tranche
1 000 000 000
TOTAL AMOUNT
1 000 000 000
C. Payment of a one-time commission. The Borrower cannot withdraw funds from the Loan account until the one-time fee is fully paid. D. Conditions for allocation of the tranche. Funds in the form of a one-time tranche cannot be withdrawn until the Bank is satisfied with: (a) the Program implemented by the Borrower; and (b) the consistency of the Borrower's macroeconomic policy. E. Deposit of Loan funds. Except in cases where otherwise agreed with the Bank: 1. Any withdrawal of funds from the Loan Account must be deposited by the Bank into an account designated by the Borrower and acceptable to the Bank; and 2. The Borrower must ensure that each time a certain amount of the Loan is deposited into this account, the equivalent amount will be recorded in the Borrower's budget management system, in a form acceptable to the Bank. F. Unauthorized expenses. The Borrower assumes responsibility for preventing the use of Loan funds to finance unauthorized expenses. If the Bank discovers at any time that the Loan funds have been used to cover unauthorized expenses, the Borrower must reimburse the Bank for the equivalent amount immediately after receiving notification from the Bank. The amounts reimbursed to the Bank upon such request will be cancelled. G. Closing date. The closing date is December 31, 2016.
APPENDIX 2 Repayment schedule
1. The following table shows the Repayment Dates of the principal debt and the percentage of the total principal amount of the Loan to be repaid on each Repayment Date of the Principal debt (the "Repayment Share"). If the Loan funds are fully withdrawn on the first Repayment Date of the Principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined by the Bank by multiplying: (a) the Loan Amount withdrawn on the first Repayment Date of the principal debt and (b) the Repayment Share for each The repayment date of the principal debt, this amount to be paid, will be adjusted as necessary, in order to deduct the amounts provided for in paragraph 4 of this annex, and to which currency conversion applies.
The date of payment of the principal debt
Repayment rate (in percentage terms)
March 1 and September 1 of each year, starting from September 1, 2018 to March 1, 2035
2,86%
September 1, 2035
2,76%
2. If the Loan funds are not fully withdrawn on the first Repayment Date of the principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined as follows: (a) To the extent that any Loan funds have been withdrawn on the first Repayment Date of the Principal debt, the Borrower must repay the Loan Amount withdrawn on that date in accordance with paragraph 1 of this annex. (b) Any amounts withdrawn after the first Repayment Date of the principal debt must be repaid on each Repayment Date of the principal debt after the date of such withdrawal in amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the initial amount of the Repayment Share specified in the table in paragraph 1 of this annex for that Repayment Date. The Initial Amount of the Repayment Portion of the Payment ("The Initial Amount of the Repayment Portion"), and the denominator of which is the sum of all remaining initial amounts of the Repayment Portion of payments on or after the Repayment Date of the principal debt; This amount to be paid will be adjusted as necessary in order to deduct the amounts provided for in paragraph 4 of this annex and to which currency conversion applies. 3. (a) Loan amounts withdrawn within two calendar months prior to any Repayment Date of the Principal solely for the purpose of calculating the amounts of the principal debt payable on any Repayment Date of the principal debt will be considered withdrawn and outstanding on the second Repayment Date of the principal debt after the withdrawal date and will be repaid on each Repayment Date of the Principal debt; starting from the second Repayment Date of the principal debt after the withdrawal date. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank adopts a payment billing system in which invoices are issued on or after the relevant Principal Repayment Date, the provisions of this subparagraph will not apply to such withdrawals made after the adoption of such billing system. 4. Notwithstanding the provisions of paragraphs 1 and 2 of this annex, when Converting the currency of all or any part of a loan into an Approved Currency, the amount thus converted into an Approved Currency that is due on any Repayment Date of the principal debt occurring during the conversion period must be determined by the Bank by multiplying such amount in the currency of its denomination directly before conversion to: (i) an exchange rate that reflects the amounts of the principal debt in an Approved Currency payable by the Bank as part of currency hedging transactions related to the Conversion; or (ii) the currency component of the current set rate, if the Bank decides to do so in accordance with the Conversion guidelines. 5. If the withdrawn loan balance is denominated in more than one loan currency, the provisions of this annex shall apply separately to the amounts denominated in each loan currency, with a separate repayment schedule for each such amount.
addition
Section I. Definitions
1. "Republican Budget for 2015" means the republican budget of the Borrower for the period from January 1, 2015 to December 31, 2015. 2. "Agreement on Trade-related Investment Measures" means an agreement concluded in 1994 by the members of the General Agreement on Tariffs and Trade (the predecessor of the WTO), which establishes rules that apply to a country's domestic regulations regarding foreign investors. 3. "Basel III" means the reforms developed by the Basel Committee on Banking Supervision to strengthen regulation, supervision and risk management in the banking sector. 4. "Unauthorized expenses" means any expenses: (a) for goods or services provided under contracts financed or to be financed by any national or international financial institution or agency other than a Bank or Association, or financed by a Bank or Association under other loans, credits or grants; (b) for products belonging to the following groups or subgroups of international trade classification standards, version 3 (SITC, Rev.3), published by the United Nations in the Collection of Statistical Materials, Series M, No. 34/Version 3 (1986) (SITC), or in any other subsequent groups or subgroups of new versions of International Trade Classification Standards, about which the Bank must notify the Borrower:
Group
The subgroup
Product Description
112
Alcoholic beverages
121
Tobacco, non-industrial tobacco, tobacco waste
122
Industrial tobacco (with/without tobacco substitutes)
525
Radioactive or related materials
667
Pearls, processed or unprocessed precious and semi-precious stones
718
718.7
Nuclear reactors and its parts, fuel cells (cartridges), non-irradiated, for nuclear reactors
728
728.43
Tobacco production equipment
897
897.3
Jewelry made of gold, silver, and platinum (excluding watches and watch cameras), as well as jewelry made of gold and silver (including inserts made of precious stones)
971
Non-monetary gold (excluding gold-bearing ores and concentrates)
(c) for goods intended for military or paramilitary purposes or for consumption as luxury goods; (d) for environmentally hazardous goods, the production, use and import of which are prohibited by the laws of the Borrower or international agreements to which the Borrower is a party; (e) for any payments prohibited by a decision of the United Nations Security Council Adopted by the United Nations in accordance with Chapter VII of the UN Charter; and (f) in respect of which the Bank has discovered that any representative of the Borrower (or any other recipient of any Loan funds) has participated in corrupt, deceptive, fraudulent, coercive or collusive practices in connection with the use of Loan funds, and the Borrower (or any other recipient) has not accepted timely measures and appropriate actions, satisfactory to the Bank, aimed at the prompt elimination of such practices. 5. "Financial Supervision Agency" means the Agency of the Republic of Kazakhstan for Regulation and Supervision of the Financial Market and Financial Organizations, reorganized in accordance with Decree of the President of the Republic of Kazakhstan dated April 12, 2011 No. 25. 6. "General Terms and Conditions" means the "General Terms and Conditions for Loans of the International Bank for Reconstruction and Development" dated March 12, 2012, as amended in section II of this addendum. 7. "GDP" means the gross domestic product of the Borrower. 8. "IFRS" means International Financial Reporting Standards developed by the International Accounting Standards Board, which is the rulemaking body of the IFRS Foundation. 9. "IFRS 13" means "IFRS 13, Fair Value Measurement", a financial reporting standard issued and effective January 1, 2013. 10. "Ministry of National Economy" or "Ministry of National Economy" means the Ministry of National Economy of the Borrower or any of its legal successors. 11. "Ministry of Finance" means the Ministry of Finance of the Borrower or any of its legal successors. 12. "Monetary Policy of the Republic of Kazakhstan until 2020" means the medium-term monetary policy approved by the NBK on April 24, 2015, which underlies the plan for the transition from exchange rate to inflation targeting. 13. "Monthly calculation index" or "MCI" means an indicator used in Kazakhstan to calculate pensions, benefits and other social benefits, as well as fines, taxes and other payments. 14. "National Bank of the Republic of Kazakhstan" or "NBRK" means the central bank of the Borrower. 15. "NBK Council" means the highest administrative body in the NBK. 16. "NFRK" means the National Fund of the Republic of Kazakhstan, established in August 2000 as a stabilization fund. 17. "Parliament" means the legislative body of the Borrower. 18. "Program" means a program of actions, goals and strategies designed to stimulate growth and achieve progressive poverty reduction, which are defined or referenced in a letter dated October 9, 2015, where the Borrower informs the Bank of his obligations to implement the Program and requests the Bank to assist in its implementation. 19. "Republican budget" means the republican budget of the borrower. 20. "One-time tranche" means the Loan amount allocated under the "One-time Tranche" category in the table given in Part B of section II of Annex 1 to this Agreement. 21. "PCGS" means an enterprise in the quasi-public sector of the Borrower. 22. National Welfare Fund Samruk-Kazyna JSC means a joint-stock company founded by By Decree of the President of the Republic of Kazakhstan dated October 13, 2008 No. 669. 23. "State Revenue Committee" means the committee of the Ministry of Finance established in accordance with the Resolution of the Government of the Republic of Kazakhstan dated August 14, 2014 No. 933. 24. "By-law" means non-regulatory regulatory acts of the Borrower issued for the purpose and/or for the further implementation of legislative and other higher acts in the hierarchy of regulatory acts of the Borrower. 25. "VAT" means value added tax. 26. "WTO" means the World Trade Organization, an international organization that regulates trade rules between countries.
Section II. Amendments to the general terms and conditions
The following changes have been made to the general terms and conditions: 1. The links to sections, titles, and numbering of sections have been changed in the content to reflect the changes outlined in the following paragraphs. 2. The last sentence of paragraph (a) of section 2.03 (regarding Withdrawal Requests) has been completely deleted. 3. Sections 2.04 (Allocated accounts) and 2.05 (Eligible expenses) have been completely deleted, and the remaining sections in article II have been renumbered accordingly. 4. Section 3.01. (One-time commission) should be worded as follows: "Section 3.01. One-time commission; Reservation Fee (a) The Borrower pays a one-time commission to the Bank for the loan amount at the rate specified in the Loan Agreement (hereinafter referred to as the "One-time"). (b) The Borrower pays the Bank a reservation fee for the unused loan balance at the rate specified in the Loan Agreement (hereinafter referred to as the "Reservation Fee"). The reservation fee is charged from the date sixty days after the date of the Loan Agreement until the corresponding dates when the amount is withdrawn or cancelled by the Borrower from the Loan Account. The reservation fee is paid every six months at the end of the period on each payment date." 5. Sections 5.01 (General Principles of Project execution) and 5.09 (Financial management; Financial reporting; Audit) have been completely deleted, and subsequent sections of article V have been renumbered accordingly. 6. Paragraph (a) of section 5.05 (renumbered according to paragraph 5 above and relating to the Use of Goods, works and services) has been completely deleted. 7. Paragraph (c) of section 5.06 (renumbered according to paragraph 5 above) should be worded as follows: "Section 5.06. Plans; Documents; Accounts ... (c) The Borrower keeps all accounts (contracts, payment orders, invoices, invoices, receipts and other documents) confirming the expenses under the Loan for two years after the Closing Date. The Borrower provides the Bank's representatives with the opportunity to examine these accounts." 8. Paragraph (c) of section 5.07 (renumbered according to paragraph 5 above) should read as follows: "Section 5.07. Plans; Documents; (c) The Borrower prepares or prepares and submits to the Bank, no later than six months after the Closing Date, a report of such volume and with such degree of detail as the Bank may reasonably require on the implementation of the Program, the fulfillment by the Loan Parties and the Bank of their respective obligations under the Legal Agreements and the fulfillment of the objectives of the Loan.". 9. The definitions, all references to sections, titles and numbering of sections have been changed in the appendix to reflect the changes outlined in the following paragraphs. 10. The annex has been amended by adding a new paragraph 19 with the following definition of "Reservation fee" and a corresponding renumbering of the remaining paragraphs: "19. "Reservation Fee" means the reservation fee specified in the Loan Agreement for the purposes of Section 3.01 (b).". 11. The renumbered paragraph 37 (originally paragraph 36) of the addendum ("Eligible expenses") should read as follows: «37. "Eligible expenses" means any expenditure of funds from a Loan allocated to support the Program, other than expenses that are not permitted to be financed under this Loan Agreement." 12. The renumbered paragraph 44 (originally paragraph 43) of the addendum ("financial statements") has been completely deleted. 13. In paragraph 48 of the addendum, the definition of "One-time commission" was changed by replacing the reference from section 3.01 to section 3.01 (a). 14. In paragraph 67 of the addendum, the definition of the term "Loan payment" should read as follows: «67. "Loan Payment" means any amount paid by the parties to the loan to the Bank in accordance with a legal agreement or these General Terms and conditions, including (but not limited to) any amount of the Loan Balance, interest, one-time fee, reservation fee, late payment interest (if any), early repayment penalty, any transaction fee fee for conversion or early termination of conversion, commission for fixing the variable spread (if any), any payments for setting an interest rate limit or a fixed interest rate band, and any transaction costs paid by the Borrower.". 15. In paragraph 72 of the addendum, the definition of "Payment date" was changed by deleting the word "is" and adding the words "and the commission for obligations are" after the word "interest". 16. The term "Project" defined in paragraph 75 of the addendum has been changed and set out as "Program" and its definition is set out in the following wording (and all references to "Project" throughout these general terms and conditions are considered to relate to the "Program"): "75. "Program" means the program referred to in the Agreement about the loan, and for which the loan was allocated."
I hereby certify that this translation corresponds to the text of the Loan Agreement (The First Loan for financing development policy in the field of macroeconomic management and improving economic Competitiveness) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed on February 17, 2016 in Astana.
Head of the Document Editing and Linguistic Expertise Department of the Document Management Department of the Ministry of Finance of the Republic of Kazakhstan B.Akhmetzhanova
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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