This CLIENT UPDATE includes amendments to the legislation of the RK and key appointments in February 2011.
The following 322 regulatory legal acts were adopted in November 2010:
• Laws of the Republic of Kazakhstan – 10;
• Decrees of the President of the Republic of Kazakhstan – 9;
• Resolutions of the Government of the Republic of Kazakhstan – 98;
• and other regulatory legal acts.
Most of these regulatory legal acts are concerning public sector, but among them there are some which may attract your attention and affect your business in Kazakhstan in a certain way.
We would like to draw your attention to the following regulatory legal acts:
According to the Law of the Republic of Kazakhstan On changes and amendments to certain legislative acts on Mortgage lending and protection of rights on consumers of financial services and investors # 406-IV dated 10 February 2011 to some legal acts were made the following amendments and changes.
Changes to the Civil code of the Republic of Kazakhstan dated 1 July 1999.
The banks and other authorized legal entities, which have a license to provide loans are prohibited unilaterally to change the terms of the loan agreements. Also there is an additional term for loan agreement related to period of loan return and/or payment of interest rate which is 40 days.
Changes to the Law of the Republic of Kazakhstan On banks and banking activities #2444 dated 31 August 1995.
According to the amendments, the banks are prohibited to make adjustment of amounts of loans provided in tenge to any monetary equivalent under loan agreements, excluding agreements, concluded between the banks.
Also the banks cannot unilaterally suspend the provision of new loans under concluded loan agreement, excluding the following cases:
• If the loan agreement stipulates such possibility for the bank:
• if the borrower violated its obligations to the bank;
• if the borrower becomes financially unsound;
• if the changes to the legislative acts impact the bank’s ability on fulfillment its obligations.
Additionally the bank is not entitled to enforce the borrower to conclude the relevant agreements with particular insurance or appraisal companies, if such services are required under the loan agreement, as well as to impose penalties for full or partial premature loan repayment within the period, exceeded one year period.
RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN ON THE APPROVAL OF RULES FOR EXAMINING DRAFT SUBSOIL USE CONTRACTS № 118 DATED 10 FEBRUARY 2011 (IS NOT EFFECTIVE).
The terms of examining draft of subsoil use contracts on conducting economic, ecological and legal examination are stipulated in mentioned Rules. The economic prospects and legal implications of the drafts of subsoil use contracts should be examined within 30 calendar days, and the environmental impact of activities shall be examined within 3 month.
RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN ON THE APPROVAL OF RULES ON DETERMINING HISTORICAL COSTS AND THE VALUE OF GEOLOGICAL INFORMATION № 120 DATED 10 FEBRUARY 2011 (IS NOT EFFECTED).
The historical costs are overall past expenses incurred by the state in connection with geological exploration and exploration of oilfield.
The value of geological information owned by the state is determined as a part of the total amount of historical costs.
The amount of historical costs and the value of geological information are determined by the authorized state body.
RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN ON THE APPROVAL OF RULES FOR MONITORING AND CARRYING OUT CONTROL OVER THE FULFILLMENT OF CONTRACTUAL OBLIGATIONS BY SUBSOIL USERS № 117 DATED 10 FEBRUARY 2011 (IS NOT EFFECTED).
The process of monitoring shall be classified as a process of fulfillment of contractual obligations by subsoil users. The control on it includes the activities aimed at securing the satisfaction of such obligations.
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.