GOK APPROVED NEW WORDING OF GB ISSUE, FLOATATION, CIRCULATION, REDEMPTION AND SERVICING RULES

/IRBIS, Apr.09, 01/ - By resolution #437 dated April 02, 2001, "On amendments and modifications to several decisions of the Government of Kazakhstan" the government of Kazakhstan (GOK) approved new wording of government bonds issue, floatation, circulation, redemption and servicing rules. The resolution is modified in a view to comply with other legislative regulation. The modifications related to issue, floatation, circulation, redemption and servicing rules of following government bonds: MEKKAM, MEOKAM< MEIKAM, MEKAVM, MEAKAM. There are several fundamental modifications: Estimation basis for all named bonds defined as actual number of calendar days in estimation period of circulation and 365 days in a year (previous basis actual / 364). Circulation terms for MEKKAM were 3,6,12 months. New term of 9 months was added. If redemption or principal repayment date falls on legal holiday, then payments will be made on first working day next to holiday unless otherwise stipulated by Finance Ministry. No information was given regarding coupon repayment dates. Another interesting amendment related to MEAKAM is possibility of their prescheduled redemption. Prescheduled redemption is made with repayment of interest (actual time of circulation) in the next period of interest payroll. The National Bank, entity that manages bonds, should be informed on redemption prior 7 days to the date. In turn, the bank should inform primary dealers prior to 5 working days. New rules stipulate prescheduled redemption of MEKAVM as well. This redemption should be made at discounted price coordinated with National Securities Commission (NSC) and estimated using discounted prices o floatation and interest accrued for actual period of circulation. All repayments are made at NBK exchange rate prior to prescheduled redemption. The information on MKAVM is disseminated in the same was as for MEAKAM. The rules related to MEOKAM note that circulation term of redeemed bonds should be divisible by 6 month. The rest of modifications are editorial. They mostly relate to creation of single and standard terms for the financial market in Kazakhstan and to conformance of several notions with Kazakhstan laws.