SETTLEMENT OF OVERDUE DEBT

Conditions and procedure for debt settlement and measures taken against an insolvent borrower.

Article 36 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan” providesconditions and procedure for debt settlement and measuresapplied to an insolvent borrower, including:

1. Within 30 (thirty) calendar days from the date of delay in fulfilling the obligation under a bank loan agreement, a borrower - an individual has the right to visit the bank (an organization carrying out certain types of banking operations) and (or) submit in writing or in the manner provided for in the bank loan agreement, a statement containing information about the reasons for the delay in fulfilling the obligation under the bank loan agreement, income and other confirmed circumstances (facts) that determine it

1) a change towards a decrease in the interest rate under a bank loan agreement;
2) changing the currency of the amount of the balance of the principal debt on a bank loan issued in foreign currency to the national currency;
3) deferment of payment of the principal debt and (or) interest;
4) changing the method of debt repayment or the order of debt repayment, including repayment of the principal debt on a priority basis;
5) changing the term of a bank loan;
6) forgiveness of the overdue principal debt and (or) remuneration, cancellation of penalties (fines, penalties), commissions and other payments related to servicing a bank loan;
7) independent sale by the mortgagor of the real estate that is the subject of the mortgage, in the manner prescribed by Article 20-1 of the Law of the Republic of Kazakhstan “On the Mortgage of Real Estate”;
8) providing compensation in exchange for fulfilling an obligation under a bank loan agreement by transferring collateral to the bank (an organization carrying out certain types of banking operations);
9) sale of real estate that is the subject of a mortgage, with the transfer of obligations under a bank loan agreement to the buyer.

Consideration by the Bank of changes to the terms of the bank loan agreement

The bank (an organization carrying out certain types of banking operations) within 15 (fifteen) calendar days after receiving the application of the borrower - an individual, considers the proposed changes to the terms of the bank loan agreement in the manner established by the regulatory legal act of the authorized body, and in writing or in the manner provided for by the bank loan agreement, informs the borrower - an individual about:

1) agreement with the proposed changes to the terms of the bank loan agreement;
2) their proposals to change the terms of the bank loan agreement;
3) refusal to change the terms of the bank loan agreement, indicating a reasoned justification for the reasons for such refusal.

If the Bank receives a decision to refuse to change the terms of the bank loan agreement or if a mutually acceptable decision is not reached to change the terms of the bank loan agreement, the borrower - an individual, within 15 (fifteen) calendar days from the date of receipt of the Bank's decision, has the right to contact the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market with simultaneous notification to the Bank.

The application of a borrower - an individual is considered by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market in the manner established by the legislation of the Republic of Kazakhstan.
Measures taken by the bank in the event of failure by the borrower to fulfill the obligations under the bank loan agreement:

1) Charge a penalty (fine, penalty).

2) To foreclose in an indisputable (non-acceptance) manner on the money, including by presenting a payment request, available in the bank accounts of the borrower, the guarantor, with the restrictions established by the legislation of the Republic of Kazakhstan.

3) Apply any measures provided for by the legislation of the Republic of Kazakhstan and (or) the bank loan agreement, including changing the terms of execution of the bank loan agreement, filing a claim in court to collect the amount of debt under the bank loan agreement, as well as foreclosure on the mortgaged property extrajudicially (except for cases provided for by the legislative act of the Republic of Kazakhstan on the mortgage of real estate) or in court;

4) Transfer the debt for pre-trial collection and settlement to a collection agency.

5) Assign the right (claim) under a bank loan agreement to a third party, if the borrower is overdue in fulfilling the obligation under the bank loan agreement for more than ninety consecutive calendar days, for a mortgage loan issued to an individual - over one hundred and eighty consecutive calendar days.

A package of documents for individual entrepreneurs to submit an application for restructuring
1. identity document
2. documents confirming deterioration in financial condition
3. provision of additional documents, if necessary

Borrower Steps:
1. apply for loan restructuring
2. provide documents

To resolve problem debt on a loan, the borrower must:

Contact the Bank with an application in any form, indicating the reasons for the delay, information about income and other facts that require changes to the terms of the bank loan agreement.
You can submit an application at Bank branches or by email -info@vtb-bank.kz., - via the Internet bank “VTB Business”,by filling out the application form on the bank's website;

Contacts:
Providing advice on the settlement of problem debts by calling8 (727) 330 50 50or contact the Contact Center5050