Stressful assets will be sold through electronic platforms

In order to develop the infrastructure of the stress assets market this year, the Agency has developed legislative amendments aimed at establishing: (1) mandatory functional and technical requirements for electronic trading platforms; (2) obligations of banks, microfinance organizations and other market participants to sell stress assets through electronic trading platforms; (3) the authority of the Agency for accreditation and regulation of operators of electronic trading platforms.

In addition, the regulatory legal acts of the Agency will regulate the procedure for issuing permits for the creation of digital platforms, as well as requirements for information security and bidding on digital platforms will be introduced.

The introduction of a system for selling stressful assets through electronic platforms has a number of important advantages. It promotes wider access to information about distressed assets and increases competition between potential buyers. This step is important for reducing risks and improving the management of distressed assets in the economy.

According to these innovations, banks, microfinance organizations and other credit institutions will be required to sell the recovered property, as well as the rights of claim under bank loan and micro-credit agreements through electronic platforms. This will ensure transparency of transactions and contribute to the formation of fair market prices for these assets.

Electronic platforms that have received permission from the Agency will be required to provide access to the infrastructure for potential sellers and buyers, which will allow for effective bidding on property previously recovered for debt repayment, as well as rights of claim under bank loan agreements and microcredit.

One of the key requirements for the operation of digital platforms established in the new legislative amendments is the registration of a legal entity. Such organizations must be established in accordance with the legislation of the Republic of Kazakhstan and have the organizational and legal form of a joint-stock company or limited liability partnership.

Trading on digital platforms will be open to all interested investors, including financial companies and private investors represented by legal entities and individuals, including foreign investors.

It is important to note that the sale of loans issued to individuals to private investors is prohibited by banking legislation.

Unified regulation of operators of electronic platforms for the sale of distressed assets is necessary to ensure the protection of the rights of borrowers whose obligations will be realized through electronic platforms. Therefore, legislative amendments and detailed requirements at the level of the Agency's NPA provide for the Agency to have the authority to identify violations and apply appropriate measures if necessary.

The legislative changes that have been developed by the Agency will be adopted by the end of this year.