The amendments to the Order of the Deputy Prime Minister of the Republic of Kazakhstan - Minister of Finance No. 2023 dated October 5, 1061 "On Approval of the Rules for the Management of Assets Transferred to the Management Company" open up new opportunities for increasing transparency, expeditious sale and protection of assets returned to state ownership. These changes are aimed at optimizing the management process, reducing risks, and increasing revenues to the Special State Fund.
The introduction of changes to the Asset Management Principles was an important step towards improving the management of assets returned to the state. Transparency, flexibility and professionalism are the principles underlying the new edition, which will significantly improve the process of their implementation and reduce risks.
One of the main innovations was the expansion of the conceptual apparatus, which allowed the involvement of consultants and the use of new forms of trading, such as commercial competition. These measures allow for a more accurate assessment of assets and the use of the best offers on the market. This, in turn, minimizes the risk of errors and improves the quality of asset management.
An important change has also affected the work of the Asset Acceptance Commission. The Commission now not only accepts assets from the company's balance sheet, but also participates in making key decisions on their management. This significantly speeds up the process and increases its efficiency, as decisions are made on the spot, without unnecessary bureaucracy.
The subsequent abolition of lease-to-own and trust management procedures was a major step forward. This removes uncertainty and reduces the risk of assets not being returned to state ownership. Thus, assets are brought to the market more quickly, which facilitates their rapid sale.
Auctions and tenders – the main way to sell assets – are now held in an open and understandable system. The rules, requirements for participants and the steps of the process are clearly defined, which makes participation in the auction accessible and transparent to everyone. If there are no buyers at the first auction, assets can be re-offered at a reduced price, which will speed up their sale.
The new rules for managing repossessed assets have eliminated the method of reducing prices at auctions. This decision is due to a number of reasons.
First, a decline in price can significantly reduce the proceeds from the sale of an asset, as in this case it may be sold significantly below its market value, resulting in a loss of up to 50% of its original price.
Second, a price decline may create the impression that the asset is of poor quality, which negatively affects its perception by trading participants.
Third, auction participants can deliberately wait for the price to fall further, which leads to a decrease in trading activity. A price-raising auction, even if a discount is granted, retains a high chance of making a profit from the sale. All of these factors make the price-lowering method more effective in asset management.
Improvements have also affected the asset valuation mechanism. The management company has the opportunity to choose between an assessment provided by the authorized body and an independent assessment. This increases flexibility and allows for an accurate determination of the market value of assets, which reduces costs when selling them.
Also, an important step was to focus on assets located outside Kazakhstan. The new rules provide for the implementation of such assets taking into account the legislation of the country in which they are located, which reduces legal and tax risks and increases their investment attractiveness.
In addition, measures have been introduced to protect assets until they are fully realized. This includes insurance, protection and maintenance of assets, which allows them to maintain their value until they are sold. These measures reduce the risk of loss or damage to assets and ensure their safety.
Finally, the management company has gained more authority to make changes to the tender conditions, allowing it to respond flexibly to market conditions. This will help find buyers faster and prevent assets from remaining idle for long periods.
All these changes are aimed at creating a more efficient and transparent mechanism for asset management. This will contribute to both the protection of state interests and an increase in budget revenues. The new order of asset management is becoming an important element of the stability and development of the country's economy.