Alert. Bankruptcy in Kazakhstan
On 11 May 2020, the President of the Republic of Kazakhstan Kassym-Jomart Tokayev at the session of State Emergency Commission ordered the suspension of the initiation of bankruptcy proceedings until 1 October 2020.
In the second and third readings, a draft law was adopted on amending Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”. One of the main innovations is the out-of-court bankruptcy of the debtor.
The submission of monetary claims by the affiliated creditors in a bankruptcy case is usually accompanied by serious and sometimes lengthy legal disputes regarding the validity and sequence of such claims. This situation occurs due to the fact that to prove the unreality of business transactions performed by the affiliates and, as a result, to recognize the claims of the affiliate creditor as not a subject to inclusion in the register is sometimes quite difficult, more complicated than the requirements of an independent creditor. Since such creditors usually have a subjective connection with the debtor, through which they can access both the debtor's seals and the signatures of authorized persons on the relevant documents, and accounting registers and even information about the flow of funds on the accounts.
In 2020, Kazakhstan faces a hurricane in the form of the impact consequences of the COVID-19 pandemic and the plunge in the price of oil to a 20-year low, including, among others, decreased economic activities, devaluation of the local currency (tenge), reduced foreign direct investments in risky markets and shrinking state budgets.
The brochure provides you with the comprehensive information about the main forms of doing business in Kazakhstan, including a detailed comparison table of such forms, information on the tax structure, bankruptcy, PPP and frequently asked questions for starting and doing business in Kazakhstan.
On restructuring, rehabilitation and bankruptcy procedures in the light of the COVID-19 epidemic and the current economic situation
The declaration of a state of emergency in the light of the COVID-19 epidemic, the following quarantine, the related restrictions, the fall in oil prices and the subsequent devaluation of tenge, together will have a serious negative impact on the financial situation of whether debtors or creditors. This can lead both to the need to protect debtors from the claims of creditors, and to protect the interests of creditors in order to avoid abuse by the debtors. Therefore, we considered it appropriate to remind readers of the main insolvency resolution regimes that are available to creditors and debtors under the Law of the Republic of Kazakhstan On Rehabilitation and Bankruptcy.
The Cabinet of Ministers of the Republic of Azerbaijan adopted Action Plan in accordance with the paragraph 10.2 of the Order #1950 of the President of the Republic of Azerbaijan dated March 19, 2020.
Benefits and exemptions for businesses in quarantine conditions
In connection with the epidemiological situation in the world and the spread of coronavirus in Uzbekistan, there have been taken strict quarantine measures of the population. In order to minimize the negative consequences of the pandemic and global crisis on the Uzbek economy, the Government of Uzbekistan is taking measures to support entrepreneurship, export and financial stability.
Since 1 January 2017, a car parking space has been legally recognised as an independent property item, which has special boundaries in the design documentation of a building or structure, and which is subject to both cadastral and state registration.
The rapid spread of the new COVID-19 virus on the planet makes the government develop measures not only to combat the spread of its manifestations in the sanitary and epidemiological area but also prevent its negative impact on the economic and social aspects in the society.
Despite being relatively new, the current bankruptcy law in Uzbekistan (initially adopted in early 1990s) has improved drastically over the last decades. Uzbekistani insolvency regime, that was upgraded significantly throughout the several redrafts of the law, is still undergoing some changes that are being introduced as a part of its ambitious market-oriented economic reforms.
By carrying out entrepreneurial activities, i.e. independent activities carried out at its own risk, aimed at systematic profit from the use of property, sale of goods, performance of works or provision of services, in conditions of market instability, exchange rate fluctuations and consumer demand, the company may experience signs of bankruptcy.