OREANDA-NEWS. Following the January 25, 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 first quarter of 2016 were fixed.

- debt securities of entities of the quasi-state sector – 8.49 % APR;

- other debt securities – 9.96 % APR.

The Board of Directors has not fixed the discount rate for the first quarter of 2016 for calculation of the fair value of illiquid debt securities being in the buffer category. Thus, the Exchange with regard to the buffer category will use a discount rate of 11.94 % APR, which was fixed for the third quarter of 2013.

We remind you that the mentioned discount rates are fixed in accordance with the Rules of Accounting and Evaluation of Pension Assets approved by Resolution No. 24 of February 26, 2014 of the Management Board of the National Bank of the Republic of Kazakhstan (the Rules).

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 Board of Directors once a quarter for each particular 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".

In case the Board of Directors did not approve discount rates for the accounting quarter for purposes of calculation of the fair value of illiquid debt securities, the Exchange must use discount rates approved by the Exchange Board of Directors for the preceding accounting quarter.