18.07.2023

BAITEREK HOLDING'S SUBSIDIARY ORGANIZATIONS REMOVED SIGNS OF VIOLATIONS OF ANTI-MONOPOLY LEGISLATION

Earlier, based on the results of monitoring the activities of operators of state support measures, the Agency for the Protection and Development of Competition in the activities of the Development Bank of Kazakhstan JSC (DBK), KazakhExport JSC revealed signs of violation of competition law.

In particular, DBK's internal documents included provisions that create unreasonable competitive advantages for borrowers who had previously gained access to financial instruments. For this category of borrowers, it was not required to undergo bank expertise procedures when receiving additional financing.

In addition, within the framework of the implementation of the State Program for Industrial and Innovative Development for 2015-2019, despite the existence of approved, parity financing schemes (50 percent - a budget loan, 50 percent - other sources), individual projects were financed entirely at the expense of budget funds, while others in unequal proportions, or 100 percent - at the expense of "expensive" money attracted from other sources. These actions affected the final interest rate of borrowers, creating unequal conditions for access to support measures for end recipients.

Along with this, manifestations of favoritism in the activities of the DBK were expressed in the priority, accelerated consideration of applications for obtaining support measures. For example, instead of the approved 70 calendar days, individual projects were agreed upon within 3-4 days from the date of receipt, while for other projects, the deadlines for consideration were violated and exceeded more than 300 days.

In the activities of the operator KazakhExport JSC, there were signs of creating unequal conditions when establishing counter obligations to recipients of state support measures.

Based on the results of consideration of the antimonopoly response measures, the subsidiaries of Baiterek Holding agreed with the arguments of the antimonopoly authority and revised the current projects in accordance with the requirements of the current legislation. Along with this, the internal documentation of the operators was revised, as a result of which the rules that promote the creation of unreasonable competitive advantages for individual business entities were excluded.