AFS interrupted effect of license given to LIC Valut-Tranzit Life JSC and IC Valut-Tranzit Policy JSC for dealing with insuring activity

/IRBIS, July 19, 07/ - Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations (AFS) published on its web-site the information with the following content: quotation start On the basis of subparagraph 16) of article 43, subparagraph 2) of paragraph 2 of article 53-3 and subparagraph 2) of paragraph 1 of article 54 of Kazakhstan Law "On insuring activity", on the reasons of non-following requirements of prudential norms, set by Kazakhstan legislation, by the resolution of the Board of Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations dated June 30, 2007 #193 effect of the license for the right to deal with insuring activity ДСЖ #36-3/1 dated April 10, 2006, which was given to LIC Valut-Tranzit Life JSC is interrupted for the term of six months. On the basis of subparagraph 16) of article 43, subparagraph 2) of paragraph 2 of article 53-3 and subparagraph 2) of paragraph 1 of article 54 of Kazakhstan Law "On insuring activity", on the reasons of non-following requirements of prudential norms, set by Kazakhstan legislation, by the resolution of the Board of Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations dated June 30, 2007 #194 effect of the licenses for the right to deal with insuring activity ОС #20-11/1 and ДОС #20-11/1 dated May 25, 2006 and re- insuring activity ПД #20-1/1 dated May 23, 2006, given to IC Valut-Tranzit Policy JSC is interrupted for the term of six months. In compliance with paragraph 2 of article 54 of Kazakhstan Law "On insuring activity" interruption of effect of license given to an insurance (re-insurance) organization entails prohibition to make new insurance (re-insurance) contracts, including prolongation of acting insurance (re-insurance) contracts. As regards insurance (re-insurance) contracts made before, the insurance (re-insurance) organization must fulfill all assumed obligations. In accordance with the forced liquidation of Valut-Tranzit Bank JSC IC Valut- Tranzit Policy JSC and LIC Valut-Tranzit Life JSC are in a difficult financial condition. As at June 1, 07 total of KZT495,961 th. or 49.4% of assets of IC Valut-Tranzit Policy JSC and KZT820,953 th. or 79.3% of assets of LIC Valut-Tranzit Life JSC have been invested in Valut-Tranzit Bank JSC, and their withdrawal is possible by turn set by Kazakhstan legislation for satisfaction of creditors demands during bank liquidation. At that, volume of insurance organizations obligations is KZT127,271 th. and KZT552,733 th. correspondingly. For rehabilitation of the mentioned insurance organizations activities the minimum necessary volume of funds is about KZT380 m. for IC Valut-Tranzit Policy JSC and KZT930 m. for LIC Valut-Tranzit Life JSC. Investors can get additional information by turning to the insurance organizations or to Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations. quotation end [2007-07-19]