December 19, 2022

Deputy Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan Kairat Miyatov at a recent briefing in the CCS

Deputy Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan Kairat Miyatov spoke about the judicial bankruptcy procedure, voiced the consequences that a credit amnesty entails, and also explained the aspects on which citizens can apply for a credit amnesty from the state in the direction of out-of-court bankruptcy.

“The procedure of judicial bankruptcy provides for the presence of debt exceeding 4.9 million tenge, and also assumes the presence of property. This is a more complex procedure that is subject to consideration in court, a financial manager is appointed who will draw up an appropriate plan for the sale of property or repayment of debt,” Deputy Chairman Mijatov Kairat said at a briefing in the CCS.

But there is, according to him, an intermediate option.

“This is an insolvency settlement procedure, in corporate bankruptcy it is a rehabilitation procedure. In this case, the debtor is not recognized as bankrupt and he has more lenient conditions for the disposal of his property and income. A manager is also appointed to help the debtor draw up a plan for up to 5 years. During this period, it is possible to postpone payments, the lender is consulting on the possibility of writing off amounts, possibly fines, or postponing their payment to a later date,” the speaker explained.

“With all these procedures, there is a ban on obtaining loans for five years, repeated bankruptcy is possible only after seven years. In addition, there are consequences that need to be prevented,” the Deputy chairman answered questions about the consequences at a briefing in the CCS.

He named the procedures that the amnestied debtor will have to undergo.

“That is, the debtor will have to take courses to improve financial literacy in order not to come back to such a situation in the future. This will help our citizens to take a more responsible attitude to the issues of obtaining loans and understanding their financial condition in order to avoid such consequences in the future,” K. Miyatov concluded.

He also explained some aspects on which citizens can apply for a credit amnesty from the state in the direction of out-of-court bankruptcy.

“The main input criteria are non–repayment of debt for 12 months. In addition, the amount of debt should not exceed 4.9 million tenge or 1.6 thousand MCI. In addition, it is assumed that the out–of—court bankruptcy procedure can be used by citizens whose income for the debtor and dependent persons does not exceed the minimum subsistence minimum – 36 thousand tenge,” K. Miyatov said at a briefing in the CCS.

According to him, it is assumed that reconciliation by income or by their absence, by the absence of property, will be carried out on the e-government portal by integrating the database of all authorized state agencies that keep records of property.

“Then the banks will carry out the movement of money on settlement accounts. In addition, the information databases of credit bureaus also contain information about the amount of debt and the list of creditors,” the speaker added.

Source: MIA Kazinform