The Government of Kazakhstan has allowed AVMEKAM advanced repayment

/IRBIS, Aug. 10, 00/ - According to the information of REUTERS Almaty office, the Government of Kazakhstan has accepted additions to the decree on five years currency AVMEKAM issue and circulation. The additions allow the pension funds to make the AVMEKAM advanced repayment and exchange them for the seven-years eurobonds. As the National Bank monetary operations department informed REUTERS the decision was preliminary accepted in April 2000 when the Ministry of finance issued seven-years eurobonds to the sum of $350 million. The Ministry of finance should carry out advance redemption of all issued AVMEKAM to the total nominal value of $244.097.500 or exchange them for eurobonds of Kazakhstan placed on the international markets. The eurobonds have nominal value of $1,000, term of circulation 7 years, maturity date May 11, 2007. The state treasury obligations and national savings bonds nominated in tenge possessed by the pension funds were converted on April 1, 1999 in AVMEKAM with the purpose of pension assets protection against devaluation during Kazakhstan transition to the floating exchange rate. Quotations from the text, published today in the newspaper "Kazakhstanskaia Pravda" are listed below. - Point 5 supplemented by words "for the AVMEKAM yield calculation the quantity of calendar days in the appropriate period and 365 days in one year are used; - According to the supplemented point 18 the emitter has the right to carry out the advance AVMEKAM redemption. The payments are carried out in tenge at an official National Bank rate on the date previous to the settlement date; - Point 19 is introduced, according to which the taxation on AVMEKAM operations is determined according to the Kazakhstan's tax law.