SETTLEMENT OF OVERDUE DEBT
Terms and conditions and procedure for debt settlement, and measures applicable to an insolvent borrower.Article 36 of the Law of the RK "On Banks and Banking Activity in the Republic of Kazakhstan" envisages the terms and conditions and procedure for debt settlement, and measures applicable to an insolvent borrower, including:
1. Within 30 (thirty) calendar days from the date of occurrence of delinquency in fulfillment of the obligation under the bank loan agreement, an individual borrower may visit the bank (organization carrying out certain types of banking operations) and (or) submit in writing or in a manner stipulated by the bank loan agreement an application containing information on the reasons for the occurrence of delinquency in fulfillment of the obligation under the bank loan agreement, incomes, and other confirmed circumstances (facts), which cause his/her application for making amendments to the terms and conditions of the bank loan agreement, including those related to:
1) decreasing interest rate under the bank loan agreement;
2) changing the currency of the principal debt balance amount under the bank loan, issued in foreign currency, to the national currency;
3) deferral of payment under the principal debt and (or) interest;
4) changing debt repayment method or debt repayment priority, including repayment of the principal debt in priority order;
5) changing the term of the bank loan;
6) forgiveness of overdue principal debt and (or) interest, cancellation of forfeit (fine, penalty), commissions, and other payments related to servicing of the bank loan;
7) independent sale by the mortgagor of immovable property being the subject of a mortgage in the manner prescribed by Article 20-1 of the Law of the Republic of Kazakhstan "On Mortgage of Immovable Property";
8) submission of a payoff instead of fulfillment of obligations under the bank loan agreement by transferring mortgaged property to the bank (organization carrying out certain types of banking operations);
9) sale of immovable property - the subject of mortgage with transfer of obligation under the bank loan agreement to the buyer.
Consideration by the Bank of amendments to the terms and conditions of the bank loan agreement
Within 15 (fifteen) calendar days after the day of receipt of the individual borrower’s application, the Bank (organization carrying out certain types of banking operations) shall consider the proposed amendments to the terms and conditions of the bank loan agreement in the manner prescribed by the regulatory legal act of the authorized body and shall notify the individual borrower in writing or the manner prescribed by the bank loan agreement about:
1) consent to the proposed amendments to the terms and conditions of the bank loan agreement;
2) its proposals on amending the terms and conditions of the bank loan agreement;
3) refusal to change the terms and conditions of the bank loan agreement specifying motivated justification of the reasons for such refusal.
In case of receipt of the Bank's decision on refusal to amend the terms and conditions of the bank loan agreement, or in case of failure to reach a mutually acceptable decision on amending the terms and conditions of the bank loan agreement, the individual borrower within 15 (fifteen) calendar days from the date of receipt of the Bank's decision shall be entitled to apply to the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market with simultaneous notice to the Bank.
The Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market shall consider individual borrower’s appeal in the manner prescribed by the legislation of the Republic of Kazakhstan.
Measures to be taken by the Bank in case of non-fulfillment by the borrower of requirements on fulfillment of the obligation under the bank loan agreement:
1) Charge forfeit (fine, penalties). The forfeit (fine, penalty) amount for violation of the obligation to repay the loan amount and (or) pay interest under the bank loan agreement shall be determined by the bank loan agreement given limitations prescribed by the legislation of the Republic of Kazakhstan.
2) Impose a collection in an indisputable (acceptance-free) manner on money, including by way of payment claim, available on bank accounts of the borrower, and guarantor given limitations prescribed by the legislation of the Republic of Kazakhstan. Collection of the individual borrower’s debt under the bank loan agreement by way of presenting a payment claim shall be made within fifty percent of the current account balance, taking into account the requirement of securing the current account balance not less than the subsistence minimum fixed for the relevant fiscal year by the law on the republican budget.
3) Apply any measures stipulated by the legislation of the Republic of Kazakhstan, and (or) the bank loan agreement, inter alia, change the period of performance of the bank loan agreement, file a lawsuit in court to collect the debt amount under the bank loan agreement, as well as to foreclose on the mortgaged property in an extrajudicial procedure (except for cases stipulated by the legislative act of the Republic of Kazakhstan on mortgage of immovable property) or in a judicial procedure;
4) Transfer the debt for pre-trial collection and settlement to a collection agency.
5) Assign the right (claim) under the bank loan agreement to a third party, if the borrower has a delay in fulfillment of obligations under the bank loan agreement exceeding ninety consecutive calendar days, under a mortgage loan issued to an individual - exceeding one hundred and eighty consecutive calendar days.
Package of documents for an individual entrepreneur to apply for restructuring
1. identity document
2. documents confirming the deterioration of financial condition
3. submission of additional documents, if necessary
Borrower's steps:
1. apply for loan restructuring
2. submit documents
To settle the problem debt under the loan, the borrower should:
Submit to the Bank an application in any format indicating the reasons for the occurrence of delinquency, information on incomes, and other facts that cause the introduction of amendments in the terms and conditions of the bank loan agreement.
You can submit an application at the Bank's branches or to the electronic mailbox - info@vtb-bank.kz, - through the "VTB Business" Internet bank, by filling in the application form on the Bank's website;
Contacts:
Consultancies regarding settlement of problem debts via telephone number 8 (727) 330 50 50 or contact Call-Center 5050