OREANDA-NEWS. Following the October 11, 2016 decision of Kazakhstan Stock Exchange (KASE) Board of Directors the following discount rates for calculation of the fair value of illiquid debt securities issued by organizations – residents of the Republic of Kazakhstan – for the fourth quarter of 2016 were fixed.

- debt securities of entities of the quasi-public sector – 9.11 % APR;

- other debt securities – 11.03 % APR.

The Board of Directors decided not to define the discount rate for debt securities from the buffer category before the deals in this category's securities are concluded due to the absence of representative selection on securities of that category for calculation of the rate based on results of twelve months preceding that quarter.

According to item 17 of the Rules the Exchange must weekly release on its website data on the fair value of illiquid debt securities issued by organizations-residents of the Republic of Kazakhstan and included in the Exchange's official list. At this the mentioned securities mean securities whose market value (yield) cannot be calculated in accordance with the Exchange's internal document "Methodology of Securities Valuation".

According to item 16 of the Rules the fair value of the mentioned securities is defined based on the Exchange's internal document "Methodology of Calculation of the Weighted Average Yield of Debt Securities', whereas the discount rate is used as such yield. Discount rates on the mentioned securities are determined by the Exchange's Board of Directors once a quarter for each particular category (sub-category) of sector "debt securities" of the Exchange's official list based on the above-mentioned Methodology based on the annual weighted average yield in the respective category (sub-category) based on results of twelve months preceding this quarter.