Kazakhstan regulator to let banks repay state aid via dividends
This digest was compiled by AI from multiple sources — links to the originals are below.
The Financial Market Regulation Agency (ARDFR) published a draft resolution on July 13 allowing banks to repay previously received state aid in proportion to their dividend payments. The amendment modifies a March regulation governing profit distribution and dividend accrual.
The Draft Resolution
The ARDFR published a draft resolution on July 13 that would allow banks to repay state aid based on the amount of dividends they distribute. The amendment targets the March regulation that set conditions for profit distribution, dividend payments on common and preferred shares, and share buybacks. The move aims to ease the repayment burden on banks that received government support during the pandemic.
Market Impact
The draft resolution is expected to provide relief to Kazakh banks that have been under pressure to return state aid while maintaining dividend payouts. According to the ARDFR, the new mechanism links repayment to dividend amounts, potentially freeing up capital for lending. The banking sector has been grappling with high non-performing loans and regulatory tightening.
What's Next
The draft resolution is open for public discussion until July 27. It remains unclear how many banks will benefit from the new repayment mechanism and whether it will be finalized without changes.
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Kazakhstan regulator to let banks repay state aid via dividends
