In order to regulate the issues of accepting collateral as collateral for loans, the Agrarian Credit Corporation has developed a new edition of the Collateral Policy, which will come into force on June 1, 2022. This was reported by ElDala.kz with reference to the press service of the ACC.
It is reported that 100% collateral coverage of loans remains a standard requirement of the Collateral Policy. At the same time, the share of liquid collateral in the structure of collateral must be at least 70% of the required amount of collateral, the remaining share may be secured by poorly liquid collateral, including acquired property coming in the future.
“In addition, for the following types of financing, this threshold has been reduced. When purchasing new agricultural machinery, special equipment, equipment that does not require installation, a farmer can provide his own funds as an initial contribution or an advance payment in the form of investment subsidies in the amount of at least 15% of the value of the acquired asset. The remaining 85% of the value of the acquired assets can be secured by low-liquid collateral. Thus, the agricultural producer acquires machinery and equipment under a scheme similar to leasing,” the corporation clarified.
Also, in order to support small businesses, the Corporation provided additional incentive benefits for small projects. Thus, liquid collateral of at least 30% of the required amount of collateral can be made by those who draw up a loan from 6 to 100 million tenge for construction and installation work, purchase of equipment, agricultural machinery, special equipment, biological assets. At the same time, the remaining part is secured by weakly liquid collateral. For similar projects over 100 million tenge, additional requirements are imposed on the borrower or guarantor in terms of financial condition.
As noted in the ACC, when financing projects through the corporation, movable and immovable property, guarantees, loan insurance, and property rights are accepted as collateral.
There are a number of criteria for collateral. The subject of the pledge must be property that is not withdrawn from circulation, not in the primary pledge to other persons, the pledgor must be a resident of Kazakhstan and have an established right to property, confirmed by documents.
In addition, a list of property that cannot be accepted as collateral has been approved. In accordance with the legislation of the Republic of Kazakhstan and the Pledge Policy, property withdrawn from civil circulation (property, the alienation of which is not allowed), items whose circulation is limited (poisonous, narcotic and potent substances, weapons, etc.), inventory items are not considered as collateral. , having a storage period of less than 18 months, property rights (claims) inextricably linked with the identity of the creditor (claims for alimony, compensation for harm caused to life or health), property in a dilapidated and / or emergency condition, certain types of property that are not allowed foreclosure, other types of property, the pledge of which is limited by legislative acts.