On development of the distressed asset market in Kazakhstan

The Head of State signed the Law of the Republic of Kazakhstan "On Amendments to Certain Legislative Acts of the Republic of Kazakhstan on Development of Distressed Asset Market" (hereinafter - the Distressed Asset Market Development Law) on 4 July 2022, which came into effect on 4 September 2022. This Law is the logical follow-up to the work of the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market (hereinafter - the Agency) aimed at reducing the amount of distressed assets in the banking system. Since 2019, the Agency has been developing market mechanisms for the disposal of distressed assets, aimed at involving distressed assets in economic turnover through the creation of institutional environment for private investors and managers in the distressed asset market, and at increasing the transparency of the transaction process through the introduction of a specialised digital platform. The enacted Distressed Asset Market Development Law provides for the expansion of the existing list of authorised acquirers of distressed assets by including private investors and the possibility of establishing service companies to deliver NPL service and management to investors. These initiatives provide the institutional environment essential for the development of a liquid market for distressed assets based on market principles and their involvement in economic turnover. The Kazakhstan Panel Session will be held on 5 October 2022 at 11:00 am (London) to present the progress to the international investment community within the framework of the Global NPL, the key event for distressed asset market review and regional challenges. The session will be moderated by Nicholas Page. The keynote speakers are Madina Abylkassymova (Chairperson, Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market), Kanat Sharlapaev (CEO, Baiterek National Managing Holding JSC), Natalya Akentyeva (CEO, RBK Bank JSC), Rassul Rysmambetov (Financial Expert) and Hardip Bhatti (Partner, EY). The leaders of regulatory and market change will present their vision and plans for the formation of a solid secondary NPL market: • The overview of Kazakhstani distressed asset market – what opportunities does it present to private investors and servicing companies? • What are the key legal and regulatory developments in the Kazakhstani distressed market? • Who are the key players with local expertise, who can partner with international private investors and servicing companies? • How can entry into the Kazakhstani distressed market be used as a foothold into the Central Asian market? The sponsors of the session are Baiterek National Managing Holding JSC and Kazyna Capital Management JSC. More about event.