The Fund of Problem Loans JSC was established in 2012 to assist banks in the process of removing non-performing loans from their balance sheets as part of the strategic objective of improving the quality of loan portfolios in the banking system. From 2012 to 2017, the Fund was managed by the National Bank of the Republic of Kazakhstan. In 2017, the Fund was transferred to the management of the Ministry of Finance of the Republic of Kazakhstan. The sole shareholder of the Fund is the Government of the Republic of Kazakhstan.
01
Mission of the Fund
Contributing to the recovery of the national economy through improving the quality of loan portfolios of second-tier banks by purchasing non-performing assets and returning non-performing assets to economic circulation through their rehabilitation and sale.
02
Strategic Vision of the Fund
By 2027, we aim to become a professional asset management company and a national centre of competence in cleaning up loan portfolios of financial institutions, restructuring assets and managing distressed portfolios.
The Fund follows principles that ensure transparency in decision-making and the repayment of allocated funds. The Fund’s activities are focused on rehabilitating the banking sector and returning acquired non-performing loans to economic circulation. Its asset management strategy is aimed at the prompt and targeted return of assets to economic circulation while maintaining a stable and planned cash flow from asset sales.
Strategy
Strategic Directions
01
Rehabilitation of the Banking Sector
The first strategic direction of the Fund is the rehabilitation of the banking sector by supporting the stable functioning of the financial system through the development and application of effective measures to clean the balance sheets of second-tier banks from non-performing loans.
02
Return of Assets to Economic Circulation
The second strategic direction of the Fund is to return acquired non-performing loans to economic circulation through the rehabilitation of acquired assets, including restructuring, attracting investors, pre-trial or judicial sale and bankruptcy, as well as through development projects and the sale of property belonging to the Fund and its subsidiaries.
International Cooperation
Membership in International Organisations
International Public Asset Management Company Forum (IPAF)
The Fund of Problem Loans is a member of the International Public Asset Management Company Forum (IPAF). IPAF is an international platform for the exchange of successful strategies and knowledge as well as cooperation. IPAF was established by seven Asian state-owned asset management companies:
- China Cinda Asset Management Co., Ltd. (PRC)
- China Great Wall Asset Management (PRC)
- China Huarong Asset Management Co., Ltd. (PRC)
- Korea Asset Management Corporation (KAMCO)
- Sukhumvit Asset Management Co., Ltd. (Thailand)
- Debt and Asset Trading Corporation (DATC), Vietnam
- Fund of Problem Loans (Kazakhstan)
Memorandum of Understanding with KAMCO
In 2018, a Memorandum of Understanding was signed between the Fund and the Korea Asset Management Corporation (KAMCO).
KAMCO was established in 1962 as an entity affiliated with the Korea Development Bank to manage distressed assets. It was subsequently reorganised and granted the authority to purchase and rehabilitate non-performing loans of financial institutions.