February 2014 – Kinstellar’s Almaty office has recently provided a country update to the ISDA Committee, www.isda.org, on a qualified investor regulation that recently came into force in Kazakhstan. In essence, the new regulation severely restricts the ability of Kazakhstan corporates to enter into OTC derivatives transactions.
The importance of the qualified investor regulation has also increased in light of the recent devaluation of the Tenge, the national currency of Kazakhstan. Specifically, on 11 February 2014, the National Bank of Kazakhstan devalued the Tenge by 20%. This devaluation may well encourage Kazakhstan parties to enter into FX transactions to hedge their currency exposure going forward. Prospective counterparties should evaluate the risks and limitations related to FX transactions and OTC derivative transactions in general in connection with the qualified investor regulation.
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For any questions or comments, please contact Adlet Yerkinbayev, Partner, at and / or Maksim Grekov, Counsel, at .