Senators at a plenary session of the chamber on May 23 returned a law to the Majilis aimed at minimizing risks in lending to the population. The document also includes provisions to protect the rights of borrowers.
These provisions are enshrined in the Law "On Amending Certain Legislative Acts of the Republic of Kazakhstan on Minimizing Risks in Lending, Protecting the Rights of Borrowers, Regulating the Financial Market, and Improving Enforcement Proceedings."
"During the discussion of the Law, the following comments and proposals arose. It is proposed to exclude funding for the activities of the Agency for Regulation and Development of the Financial Market (hereinafter referred to as the Agency) from the republican budget with a transition to financing from the National Bank budget, along with a parallel transition of the Agency to the National Bank's procurement and accounting system. In connection with the adoption of these amendments, it is proposed to bring the title of the Law into line," said Senator Sergey Karplyuk.
The introduction of the new concept of "electronic bank loan" is being excluded as this concept is already provided for by the relevant norms of the current legislation.
It is proposed to extend the loan repayment deferral period by 60 days for military personnel undergoing urgent military service. This will allow a discharged reservist to have sufficient time for employment and restoring solvency.
Furthermore, in connection with this amendment, it is proposed not to apply certain requirements for "conscripts" regarding the conclusion of additional agreements on mortgage contracts, movable and immovable property pledge agreements.
The ban on providing electronic bank loans without biometric identification is proposed to apply only to individuals as it is impossible to conduct biometric identification of legal entities.
Additional requirements are established for the selection of banking and microfinance ombudsmen due to the inclusion of National Bank employees in the Council of Representatives.
The norms regulating the activities of credit bureaus with state participation are clarified, and additional information that collectors will provide to the credit bureau is provided.
The norms related to voluntary refusal to obtain loans when concluding agreements with pawnshops are brought into line due to the specifics of their activities.
"The composition of participants in syndicated lending by branches of non-resident banks and banks of the International Financial Center "Astana" is supplemented with individuals allowed to participate in syndicated financing to provide them with additional opportunities to invest in the economy of Kazakhstan. Requirements for organizing syndicated financing are also clarified. In addition, there are amendments related to the need to comply with legal formalities," noted the Senator.
Due to the senators' amendments, the document was returned to the Majilis.
