KASE Board of Directors fixed discount rates for calculation of fair value of illiquid debt securities of organizations - residents of Republic of Kazakhstan

/KASE, September 24, 10/ - By KASE Board of Directors' decision of September 23, 2010 discount rates for calculation of fair value of illiquid debt securities of organizations - residents of the Republic of Kazakhstan were fixed. The discount rates have been defined in accordance with Rules of Evaluation of Financial Instruments, contained in Investment Portfolio of the Pension Accumulative Funds approved by Decree of the Board of the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations of March 26, 2005 # 109 (Rules). According to the Rules, discount rates are fixed by KASE Board of Directors once a year "for every single category (sub-category) of Exchange official list's Debt Securities section, based on annual weighted average rate in the respective Exchange official list's category (sub-category) by calendar year results". KASE Board of Directors has fixed the following discount rates for the calculation of the fair value of KASE listed illiquid debt securities of organizations - residents of the Republic of Kazakhstan, which were submitted to FSA for approval: - Rated Debt securities - 9.86 % APR; - Non-rated Debt securities, first sub-category - 13.87 % APR; - Non-rated Debt securities, second sub-category - 40.02 % APR; - buffer category - 87.57 % APR. The mentioned discount rates have been defined based on data on weighted average yield of the mentioned categories (sub-categories)of KASE listed debt securities in accordance with KASE's new internal document - "Method of Calculation of Weighted Average Yield Rate for Debt Securities", which was approved by KASE Board of Directors on September 23, 2010. Illiquid debt securities are defined by the Rules as securities, whose market price cannot be calculated in accordance with KASE's internal document "Methodology of Securities Valuation" due to absence of parameters for such valuation. According to the Rules, data on the fair value of illiquid debt securities issued by organizations - residents of the Republic of Kazakhstan and included into KASE official list must be published weekly on KASE web-site. The first publication of such data is scheduled for September 27, 2010 once FSA approves these discount rates. [2010-09-24]