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19.07.2019

President’s instruction: Government approves rules for reducing the debt burden of citizens of Kazakhstan

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NUR-SULTAN. KAZINFORM - Resolution of the Government of the Republic of Kazakhstan No. 520 dated July 15, 2019, approved the rules for the use of funds to reduce the debt burden of citizens of the Republic of Kazakhstan. The relevant document is published on the Adilet information and legal system of regulatory legal acts, the correspondent of Kazinform International Information Agency reports.

"In order to implement the Decree of the President of the Republic of Kazakhstan № 34 "On measures to reduce the debt burden of citizens of the Republic of Kazakhstan" dated June 26, 2019 the Government of the Republic of Kazakhstan decides: The Government of the Republic of Kazakhstan approved the following Rules for the use of funds to reduce the debt burden of citizens of the Republic of Kazakhstan on unsecured consumer loans in the second-tier banks and microfinance institutions, payment of fees for the provision of payment services, as well as write-offs of fines and penalties to citizens of the Republic of Kazakhstan," the document says.

Repayment in second-tier banks and microfinance institutions within the framework of social support of citizens of the Republic of Kazakhstan is subject to debt on unsecured consumer loans in accordance with all the following conditions:

1) Debtors on these loans are large families, families receiving payments on the occasion of loss of breadwinner, families with disabled children, people with disabilities from childhood over 18 years of age, recipients of state targeted social assistance, orphans, children without parental care, under twenty-nine years of age, who have lost their parents to adulthood, as of 26 June 2019;

2) the total debt on the loan does not exceed 3,000,000 tenge as of 1 June 2019;

3) the amount of repayable debt, consisting of the principal debt and accrued interest, as of 1 June 2019 does not exceed 300,000 (three hundred thousand) tenge per borrower.

  1. In case of death (declaration of death) of a person having debts and falling under the scope of these Rules, his debt to second-tier banks and microfinance organizations shall be repaid in the manner and within the terms stipulated by these Rules.

Also, the procedure for the use of funds to reduce the debt burden of citizens of the Republic of Kazakhstan on unsecured consumer loans in second-tier banks and microfinance institutions, payment of fees for the provision of payment services has been defined in the document.

The document notes that the reliability, accuracy, and completeness of the information provided to the Credit Bureau are ensured by the second-tier banks and microfinance institutions.

By 31 July 2019, the Credit Bureau shall be obliged to:

1) calculate the total debt on the loan for each person stipulated by subparagraph 1) of paragraph 2 of these Rules, and determines the persons having a total debt not exceeding 3,000,000 (three million) tenge;

2) determine the debtors and their loans and (or) microcredits, which are used to repay the principal debt and remuneration in the amount not exceeding 300,000 (three hundred thousand) tenge per borrower as of June 1, 2019.

First of all, the debt on loans and (or) microcredits with the highest annual effective rate is repaid; secondly, the debt on loans and (or) microcredits with the highest debt on the principal debt and remuneration as of June 1, 2019, is repaid; thirdly, the debt on loans and (or) microcredits with the earliest date of conclusion of the loan agreement and (or) microcredit is repaid;

The Resolution also specifies the procedure for writing off fines and penalties to citizens of the Republic of Kazakhstan.

In addition, the Resolution states that the Problem Loans Fund shall submit to the National Bank of the Republic of Kazakhstan information on the implementation of debt repayment by second-tier banks and microfinance organizations for each debtor and his loan(s) by September 13, 2019; and submit to the Ministry of Labor and Social Protection of the Republic of Kazakhstan a list of persons for whom the debts have been repaid.

"The Ministry of Labor and Social Protection of the Republic of Kazakhstan within two working days from the date of receipt of information from the Fund under paragraph 17 of these Rules, enters the list into the E-Halyk information system. To obtain information on the repayment of the unsecured consumer loan in accordance with these Rules, the applicant applies to the Government for Citizens State Corporation or the e-government web portal,” the Resolution states.

Akbota Kuzekbay

https://www.inform.kz/ru/poruchenie-prezidenta-utverzhdeny-pravila-po-snizheniyu-dolgovoy-nagruzki-kazahstancev_a3549190  

«...Domestic business, the so-called national bourgeoisie, should be supported in every possible way, and those who prevent its development by unreasonable inspections, extortions, raids should be strictly punished...»

Statement from the President of Kazakhstan Kassym-Jomart Tokayev at an enlarged meeting of the Government on 15 July 2019

Zhursunov R.M.

Ombudsman for the Protection of the rights of Entrepreneurs of RK

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