Joint Resolution No. 62 of the Agency for Regulation and Development of the Financial Market and Resolution No. 45 of the National Bank of Kazakhstan on Determining the Maximum Annual Effective Interest Rates

REPUBLICAN STATE INSTITUTION "AGENCY OF THE REPUBLIC OF KAZAKHSTAN FOR REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET"		REPUBLICAN STATE INSTITUTION "NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN"
August 16, 2024 No. 62 Almaty		August 19, 2024 No. 45 Astana

JOINT RESOLUTION

On Determining the Maximum Sizes

of the Annual Effective Interest Rate

In accordance with paragraph 2 of Article 718 of the Civil Code of the Republic of Kazakhstan, paragraph 7 of Article 39 of the Law of the Republic of Kazakhstan "On Banks and Banking Activity in the Republic of Kazakhstan" and paragraph 1 of Article 5 of the Law of the Republic of Kazakhstan "On Microfinance Activity", for the purpose of determining the maximum sizes of the annual effective interest rate on bank loans and microcredits, the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the Board of the National Bank of the Republic of Kazakhstan RESOLVE:

1. Determine the maximum sizes of the annual effective interest rate:

for bank loans provided by second-tier banks, organizations carrying out certain types of banking operations – 46 (forty-six) percent for unsecured bank loans; 35 (thirty-five) percent for bank loans secured by collateral; 25 (twenty-five) percent for mortgage housing loans;

for microcredits provided by organizations carrying out microfinance activity – 46 (forty-six) percent;

for microcredits provided by organizations carrying out microfinance activity for a term of up to forty-five calendar days, in an amount not exceeding forty-five times the monthly calculation indicator established for the corresponding financial year by the law on the republican budget – less than 0.3 (zero point three) percent per day, but no more than 179 (one hundred seventy-nine) percent.

Microcredits are issued at the rate provided for in the fourth paragraph of part one of this paragraph, provided they meet the requirements set forth in the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated November 29, 2019 No. 232 "On Approval of the Procedure for Concluding a Contract for the Provision of a Microcredit, Including Requirements for the Content, Formatting of the Contract and Its First Page Containing Information on the Full Cost of the Microcredit (Sum of Overpayment on the Microcredit, Subject of the Microcredit), Mandatory Conditions of the Contract for the Provision of a Microcredit, as well as the Form of the Microcredit Repayment Schedule" (registered in the Registry of State Registration of Regulatory Legal Acts under No. 19697).

On the date of conclusion of a bank loan contract, a contract for the provision of a microcredit, a change in the interest rate on a bank loan, microcredit and (or) a change or introduction of new commissions and other payments related to the issuance and servicing of a bank loan, the annual effective interest rate may not exceed the maximum size determined by this paragraph.

2. The Department of Methodology and Prudential Regulation of Financial Organizations of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market shall ensure, in the manner established by the legislation of the Republic of Kazakhstan:

1. jointly with the Legal Department of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market, the state registration of this joint resolution in the Ministry of Justice of the Republic of Kazakhstan;

2. posting this joint resolution on the official website of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market after its official publication;

3. within ten working days after the state registration of this joint resolution, submitting to the Legal Department of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market information on the implementation of the measure provided for in subparagraph 2) of this paragraph.

3. Control over the implementation of this joint resolution shall be entrusted to the Deputy Chairmen of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market and the Deputy Chairman of the National Bank of the Republic of Kazakhstan responsible for the relevant areas.

4. This joint resolution shall enter into force on August 20, 2024 and shall be subject to official publication.

Chairman M. Abylkasymova	Chairman T. Suleimenov