On approval of the Rules for consideration of amendments to the terms of the microcredit agreement

Resolution of the Board of the Agency of the Republic of Kazakhstan for the regulation and development of the financial market dated July 16, 2021, No. 82. Registered with the Ministry of Justice of the Republic of Kazakhstan on July 21, 2021, No. 23630

      Unofficial translation

      This regulation shall come into effect on October 1, 2021.

      In accordance with paragraph 3 of Article 9-2 of the Law of the Republic of Kazakhstan "On Microfinance Activities", the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market HEREBY RESOLVES TO:

      1. Approve the attached Rules for consideration of amendments to the terms of the microcredit agreement.

      2. The Department of Financial Services Consumers’ Rights Protection, in accordance with the procedure established by the legislation of the Republic of Kazakhstan, shall ensure:

      1) together with the Legal Department, state registration of this Resolution with the Ministry of Justice of the Republic of Kazakhstan;

      2) placement of this Resolution on the official Internet resource 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 Resolution, submission to the Legal Department of information on the implementation of the measure provided for in subparagraph 2) of this paragraph.

      3. To impose control over the execution of this Resolution on the supervising Deputy Chairman of the Agency of the Republic of Kazakhstan for the regulation and development of the financial market.

      4. This Resolution is subject to official publication and shall come into effect on October 1, 2021.

      Chairman of the Agency of the
Republic of Kazakhstan for the regulation and
development of the financial market
M. Abylkassymova

  Approved
by the Resolution of the
Board of the Agency of the
Republic of Kazakhstan
for the regulation and development
of the financial market
dated July 16, 2021 No. 82

The Rules for consideration of amendments to the terms of the microcredit agreement

Chapter 1. General Provisions

      1. These Rules for consideration of amendments to the terms of the microcredit agreement (hereinafter referred to as the Rules) have been developed in accordance with paragraph 3 of Article 9-2 of the Law of the Republic of Kazakhstan “On Microfinance Activities” (hereinafter referred to as the Law on Microfinance Activities), subparagraph 4) of paragraph 1 of Article 9 of the Law of the Republic of Kazakhstan “On State Regulation, Control and Supervision of the Financial Market and Financial Organizations” and shall determine the procedure for consideration by organizations engaged in microfinance activities of applications from individual borrowers to amend the terms of microcredit agreements.

      The Rules shall use the basic concepts specified in the Law on Microfinance Activities, as well as the following concepts and abbreviations:

      1) debt - the amount of microcredit debt, including the balance of the principal debt, accrued but not paid remuneration, forfeit (fines, penalties) provided for by the microcredit agreement concluded with the borrower;

      2) borrower - an individual who has concluded an agreement on the provision of microcredit with an organization engaged in microfinance activities;

      3) microfinance organization - an organization that carries out microfinance activity - a microfinance organization, a credit partnership, a pawnshop, carrying out activities for the provision of microcredits.

Chapter 2. The procedure for considering an application for amendments to the terms of the microcredit agreement

      2. An application for amending the terms of the microcredit agreement shall be submitted by the borrower to the microfinance organization that provided the microcredit (hereinafter referred to as the Application) in accordance with paragraph 2 of Article 9-2 of the Law on Microfinance Activities.

      3. The borrower's application is subject to mandatory acceptance, registration, accounting and consideration by the microfinance organization.

      4. When the borrower submits incomplete information and documents, the microfinance organization shall request them.

      The borrower shall provide the requested documents within 5 (five) working days.

      Failure to submit the requested documents within the specified period shall be the basis for leaving the borrower's application without consideration, about which a corresponding notification shall be sent.

      5. A microfinance organization (except for a pawnshop), when considering the issue of amending the terms of an agreement on the provision of microcredit, when calculating the solvency of the borrower, shall be guided by the requirements of the Rules for calculating and limiting the debt burden ratio of the borrower of an organization engaged in microfinance activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated November 28, 2019 No. 215 (registered in the Register of State Registration of Normative Legal Acts under No. 19670).

      6. The microfinance organization, within 15 (fifteen) calendar days after the date of receipt of the borrower's application, shall consider the proposed changes to the terms of the microcredit agreement and inform the borrower about (on):

      1) agreeing with the proposed changes to the terms of the microcredit agreement;

      2) their proposals for the settlement of debts;

      3) refusal to change the terms of the agreement on the provision of microcredit, indicating a reasoned justification for the reasons for the refusal.

      When a microfinance organization decides to agree with the proposed changes to the terms of the microcredit agreement, the procedure and terms for making changes to the terms of the microcredit agreement shall be determined by the internal document of the organization carrying out microfinance activities, while the period for making the changes shall not exceed 15 (fifteen) calendar days from the date of adoption of the decision by the microfinance organization.

      When a microfinance organization sends its proposals to change the terms of the microfinance agreement, the deadline for submitting a response by the borrower to the terms proposed by the microfinance organization for changing the microfinance agreement shall be indicated in the letter of the microfinance organization and shall be at least 15 (fifteen) calendar days from the date the borrower receives the decision of the microfinance organization.