 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/KAZ/6/Rev.1 
6 June 2003 
 (03-2944) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Domestic Support and Export Subsidies  
 
Revision  
  
 The following revised information on Domestic Support and Export Subsidies in Agriculture has been received from the Ministry of Industry and Trade of the Republic of Kazakhstan with the 
request that it be circulated to the members of the Working Party. 
 
_______________ 
  
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 2 Supporting Table DS:1 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD:  Calendar Years 1996-1998  
 
Measures exempt from the re duction commitment – "Green Box" 
 
Name of measures with 
reference to criteria on 
exemption from reduction 
commitments of Annex 2 
of the Agreement on 
Agriculture  Monetary value of measures Program Description 
  KZT 000s US$ 000s  
1 2   3 
Paragraph 2:  General Services 
para 2 b. Measures for pest control, pl ant diseases protection, and veterinary 
measures  
1996 1,635,779 24,313.0 
1997 1,995,324 26,463.2 
1998 1,813,784 22,672.3 
average for 3 years  1,814,962 24,482.8 Development and implementation of preventive veterinary, sanitary, and anti-epizootic measures; 
diagnostics and control of infectious diseases of livestock; state veterinary control over imports, exports, transit, and intra-Republican movements of products and raw materials of animal origin, 
fodder, chemicals,  pharmaceutical products, other car go subject to control, as well as control over 
movements of cattle.  Analysis of phytosanitary conditions, natural spreading of pests and diseases of crops, their migration patterns, and possibilitie s to use various plant protection products with the 
view to prevent their further spreading;  quarantine measures, liquidation of focuses of infection; 
plant protection measures.   
para 2е. Assessment and control of quality of seeds and new seed varieties  
1996 222,266 3,303.6 
1997 145,455 1,929.1 
1998 129,000 1,612.5 
average for 3 years 165,574 2,281.7 Intergovernmental state control over quality, and st orage of crop seeds, as well as measures taken 
by agricultural enterprises as preparation for sowing;  fulfilment of the national standards on seeds, 
improvement of the quality of works relating to seed production and certification; control and 
documenting of sowing characteristics of seeds of all agricultural crops. Reliable assessment of new 
varieties of agricultural crops selected in the Republic of Kazakhstan or abroad aimed at the 
selection of varieties best suited for regionalization and production purposes.   
para 2 g. Operation of water reservoirs, channels, implementation of 
protecting, commissioning, adjusting, anti-sludge, anti-flood works connected with administering and regulation of water usage 
1996 285,469 4,243.0 
1997 192,494 2,553.0 
1998 462,712 5,783.9 
average for 3 years 313,558 4,193.3 Operation of water reservoirs; operation of national, oblast, and rayon channels, and other facilities 
relating to water supply of consumers; implementation of protecting, commissioning, adjusting, anti-sludge, anti-flood works connected with administering and regulation of water use.  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 3Name of measures with 
reference to criteria on 
exemption from reduction 
commitments of Annex 2 
of the Agreement on 
Agriculture  Monetary value of measures Program Description 
  KZT 000s US$ 000s  
1 2   3 
para 2 g. Development of forecasting an d regional programs on land use and 
protection. Implementation of topographic, geodetic, and other research 
works, soil survey and geobotanical prospecting, land monitoring 
1996 321,000 4,774.1 
1997 628,614 8,337.0 
1998 572,155 7151.9
average for 3 years 507,256 6,754.3 Implementation of land relations in the sphere of state control over land resources. Creation, 
development, and modernization of national ge odetic networks; development and updating o f 
paper-based topographic maps of all scales, design and compilation of political administrative 
maps, and atlases. Management of land rights in the Republic of Kazakhstan, including introduction 
of measures on improvement of land legislation to allow expansion of leasing and mortgage operations. Introduction of the national land register and land monitoring.  Compilation and 
management of the data bank on the state of land resources in the Republic of Kazakhstan; land 
zoning, and state control over land use and protection under set procedures, protection of rights o
f 
owners of land lots and land users, by issu ing documents certifying their rights; creation o f 
favorable conditions for the development of the land market; land organization of settlements.   
para 3. State stocks for 
food security purposes  
1996 6,000,600 89,188.5 
1997 0 0 
1998 0 0 
average for 3 years 2,000,200 29,729.5 Grain procurement for the national reserve of the Republic of Kazakhstan. The national reserve 
serves to meet mobilization needs and ensure food security of the Republic of Kazakhstan. Grain o f 
the national reserve has been sold in the domestic market at market prices to winning bidders o f 
open biddings or marketed in the commodity exchange.  
Total: 
1996 8,465,114 125,822  
1997 2,961,887 39,282  
1998 2,977,651 37,221  
average for 3 years 4,801,551 67,441.7  
 
Data source:  budgetary documents of the Ministry of Agriculture of the Republic of Kazakhstan. Subsidies of these categories h ave been based on budgetary programs, and have 
not been granted to farms.  Operating costs have not been subsidized.  Subsidies have not been connected with consumer prices.   
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 4 Supporting Table DS:2 
 
DOMESTIC SUPPORT:  KAZAKHSTAN 
REPORTING PERIOD:  Calendar Years 1996-1998 
 
Measures exempt from reduction commitments - Speci al and Differential Treatment – "Development Programs" 
 
 
Measure Type Name and description of measures 
with reference to criteria of Paragraph 
2 Article 6 of the Agreement on 
Agriculture  Monetary value of measures  Program Description Data Sources 
   KZT 000s US$ 000s   
 1 2 3   4 5 
1. Preferential credit to agriculture   
1996 2,683,149  39,880   
1997 829,242  10,998   (а) "Investment subsidies generally 
available to agriculture" 
1998 3,130,952  39,137   Subsidies have been granted in the framework of the 
Loan Agreement concluded between the Republic of 
Kazakhstan and the Asian Development Bank on 
11 December 1995 to fund purchase of agricultural 
production and processing facilities, agricultural 
machinery, establishment of wholesale markets and 
other market infrastructure, necessary to sell 
agricultural products, as well as to finance the 
required working capital. Ministry of 
Agriculture, 
ExImBank, 
ADB 
2. State guarantees on exte rnal non-governmental loans  
1996 7,719,236  114,733   
1997 0  0     
1998 0  0   In 1996 state guarantees have been settled under the 
Resolution of the Government of the Republic of Kazakhstan No.1022 of 14 September 1994 'On 
Implementation of the Investment Project of 
Purchase of Agricultural Machinery by JSC 'Ken 
Dala' in the Framework of the Loan Granted by the 
American ExImBank for Supply of Combine 
Harvesters and Cotton Harvesters "John Deere"' Ministry of 
Finance 
3. Provision of Agricultural M achinery on a leasing basis   
1996 605,520  9,000   
1997 800,000  10,610     
1998 529,100  6,614   Budgetary funds have been allocated to provide 
agricultural producers with agricultural machinery 
on a leasing basis in order to replace existing 
obsolete machines and tractors. Ministry of 
Agriculture 
       
 Total:  1996 11,007,905  163,613     
  1997 1,629,242  21,608     
  1998 3,660,052  45,751      
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 5 
Measure Type Name and description of measures 
with reference to criteria of Paragraph 
2 Article 6 of the Agreement on 
Agriculture  Monetary value of measures  Program Description Data Sources 
   KZT 000s US$ 000s   
 1 2 3   4 5 
1. Subsidies through the Foundation for Support of Small and 
Medium Businesses  
1996 3,364,000  50,000   
1997 1,629,242  21,608   (b) Input subsidies generally 
available to low-income or resource-poor producers  
1998 4,787,876  7,044   Soft loans allocated to small businesses from the 
Republican budget, incl. low-income and resource-
poor agricultural producers for agricultural 
production purposes and for the purchase of 
equipment and mini-technolo gies, for a term of 10 
years at the interest rate of 11 per cent per annum  Foundation for 
Support of 
Small and 
Medium 
Businesses 
 Total:     
  1996 14,371,905  213,613     
  1997 3,258,484  43,216     
  1998 8,447,928  52,795     
  average for 3 years 8,692,772  103,208     
  
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 6 Supporting Table DS:3 
 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
Reporting Period: 1996-1998  
 
Measures exempt from the re duction commitment - Direct Payments under Producti on-Limiting Programs- "Exempt Direct Payments" 
 
Monetary Value of Measure Data Source 
Measure Type Name and description of 
measure with reference to 
criteria in Article 6:5 KZT 000s  US$ 000s  
1 2 3   4 
(а)  payments based on fixed areas and yields   - 
(b)  payments based on 85% or less of the base level of production Such type of subsidies were not 
granted - 
(c) livestock payments made based on a fixed number of heads   - 
  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 7Supporting Table DS:4 
 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: 1996-1998 Calendar Years 
 
Calculation of the Total Aggregate Measurement of Support 
 
Product-specific AMS 
(from Supporting Tables 
DS:5 to DS:7 below) Current Total AMS (aggregate) Gross Output Current Total AMS to 
Gross Output (de minimis) Description of basic products 
(including non-
product specific 
AMS) Calendar year 
KZT 000s US$ 000s Product-specific 
measurements of 
support (from 
Supporting Table 
DS:8 below) KZT 000s US$ 000s KZT 000s US$ 000s % de minimis 
1 2 3   4   5   6   7   
1996 211,800   3,147  211,800   3,147   5,284,500 78,545 4.0 de minimis 
1997 364,920   4,840    364,920   4,840   2,366,000 31,379 15.4  1. Seeds of grain 
crops  
1998 400,000   5,000  400,000   5,000   2,267,800 28,348 17.6  
1996 58,800   874  58,800   874   311,600 4,631 18.9  
1997 0   0  0   0   - - -  2. Seeds of 
potatoes 
1998 0   0  0   0   - - -  
1996 141,500   2,103  141,500   2,103   988,932 14,699 14.3  
1997 0   0  0   0   - - -  3. Maize seeds 
1998 0   0  0   0   - - -  
1996 2,500   37  2,500   37   10,800 161 23.0  
1997 0   0  0   0   - - -  4. Sugar-beet 
seeds 
1998 0   0  0   0   - - -  
1996 13,400   199  13,400   199   874,921 13,004 1.5 de minimis 
1997 13,000   172  13,000   172   772,628 10,247 1.7 de minimis 5.  Fruits 
1998 0   0  0   0   - - -  
1996 350,300   5,205  350,300   5,205   5,015,433 74,546 7.0 de minimis 
1997 510,000   6,764  510,000   6,764   5,293,223 70,202 9.6 de minimis 6.  Cattle 
1998 456,000   5,700  456,000   5,700   2,324,420 29,055 19.6  
1996 536,500   7,972  536,500   7,972   3,494,440 51,939 15.3  
1997 540,000   7,162  540,000   7,162   3,618,006 47,984 14.9  7.  Sheep 
Breeding 
1998 413,000   5,163  413,000   5,163   1,467,590 18,345 28.1   
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 8 Product-specific AMS 
(from Supporting Tables 
DS:5 to DS:7 below) Current Total AMS (aggregate) Gross Output Current Total AMS to 
Gross Output (de minimis) Description of basic products 
(including non-
product specific 
AMS) Calendar year 
KZT 000s US$ 000s Product-specific 
measurements of 
support (from 
Supporting Table 
DS:8 below) KZT 000s US$ 000s KZT 000s US$ 000s % de minimis 
1 2 3   4   5   6   7   
1996  1,314,800   19,536     
1997  1,427,920   18,938     Total: 
Product-specific 
measures (sum of all measures)  1998  1,269,000   15,863     
1996  739,300   10,985     
1997  904,920   12,002     Total:  
Product-specific 
measures (noting de minimis ) 1998  813,000   10,163     
1996  32,530,510   483,366   312,814,660 4,649,445 10.4  
1997  73,320,854   972,426   298,950,000 3,963,803 24.5  Non-product-
specific measures 
(from Table DS:9) 1998  89,376,370   1,117,206   238,500,000 2,981,250 37.4  
1996  33,269,810   494,351     
1997  74,225,774   743,417     Total: 
Current Total AMS 1998  90,189,370   901,138     
Average for 3 years 65,894,985   712,969     
  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 9Supporting Table DS:5 
 
 
DOMESTIC SUPPORT:  KAZAKHSTAN 
REPORTING PERIOD:  Calendar Years 1996-1998 
 
Product-Specific Measures of Support: Market Price Support 
 
Description of 
basic products Calendar year Measure type(s) Applied 
administered priceExternal 
Reference Price Eligible 
Production Associated 
Fees/Levies Total Market Price 
Support Data Source 
1 2 3 4 5 6 7 8               
( (4-5*6)-7) 9 
   
Such type of subsidies were not granted 
  
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 10 Supporting Table DS:6 
 
 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998  
 
Product-specific Measures of Suppor t: Non-Exempt Direct Payments 
 
Other Non-Exempt Direct 
Payments  Total direct payments Description of 
basic products Calendar Year Measure type(s) Applied 
Administered 
Price External 
Reference 
Price Eligible 
Production  Total price-
related 
direct 
payments KZT 000s US$ 000s Associated 
fees/levies KZT 000s US$ 000s Data Source 
1 2 3 4 5 6 7          
((4-5)*6) 8   9 10                    
(7+8-9) 11   
1996   211,800   3,147.1  211,800 3,147.1 
1997 364,920   4,839.8  364,920 4,839.8 1.  Seeds of 
grain crops 
1998 Countervailing 
Budgetary 
Payments  400,000   5,000.0  400,000 5,000.0 Ministry of 
Agriculture 
1996   58,800   873.7  58,800 873.7 
1997 0   0.0  0 0.0 2. Seeds of 
potatoes 
1998 Countervailing 
Budgetary 
Payments  0   0.0  0 0.0 Ministry of 
Agriculture 
1996   141,500   2,102.5  141,500 2,102.5 
1997 0   0.0  0 0.0 3.  Maize seeds 
1998 Countervailing 
Budgetary 
Payments  0   0.0  0 0.0 Ministry of 
Agriculture 
1996   2,500   37.1  2,500 37 
1997 0   0.0  0 0 4.  Sugar-beet 
seeds 
1998 Countervailing 
Budgetary 
Payments  0   0.0  0 0 Ministry of 
Agriculture 
1996 13,400   199.1  13,400 199 
1997 13,000   172.4  13,000 172 5.  Fruits 
1998 Soft Loans 
0   0.0  0 0 Ministry of 
Agriculture 
1996   350,300   5,205.1  350,300 5,205 
1997 510,000   6,763.9  510,000 6,764 6.  Cattle 
1998 Countervailing 
Budgetary 
Payments 456,000   5,700.0  456,000 5,700 Ministry of 
Agriculture 
1996   536,500   7,971.8  536,500 7,972 
1997 540,000   7,161.8  540,000 7,162 7.  Sheep 
breeding 
1998 Countervailing 
Budgetary 
Payments 413,000   5,162.5  413,000 5,163 Ministry of 
Agriculture 
  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 11Supporting Table DS:7 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998  
 
Product-Specific Aggregate Measuremen ts of Support: Other Product-Specific  Support and Total Prod uct-Specific AMS 
 
Non-exempt direct 
payments (Supporting 
Table DS:6) Total AMS Description of 
basic product Calendar 
Year  Measure type(s) Other product-
specific 
budgetary 
outlays Other product 
specific support 
(include 
calculation 
details) Associated 
fees/levies Total other 
product-specific 
support Market Price 
Support (from 
Table DS:5) KZT 000s  US$ 000s KZT 000s US$ 000s  
1 2 3 4 5 6 7 
(4+5-6) 8 9 10 
(7+8+9) 
1996  211,800 3,147.1 211,800 3,147.1 
1997 364,920 4,839.8 364,920 4,839.8 1. Seeds of 
grain crops 
1998 Countervailing 
budgetary 
payments  400,000 5,000.0 400,000 5,000.0 
1996   58,800 873.7 58,800 873.7 
1997 0 0 0 0 2.  Seeds of 
potatoes 
1998 Countervailing 
budgetary 
payments  0 0 0 0 
1996   141,500 2,102.5 141,500 2,102.5 
1997 0 0 0 0 3.  Maize 
seeds 
1998 Countervailing 
budgetary 
payments  0 0 0 0 
1996   2,500 37.1 2,500 37.1 
1997 0 0 0 0 4.  Sugar-beet 
seeds 
1998 Countervailing 
budgetary 
payments  0 0 0 0 
1996 13,400 199.1 13,400 199.1 
1997 13,000 172.4 13,000 172.4 5.  Fruits 
1998 Soft loans 
0 0 0 0 
1996   350,300 5,205.1 350,300 5,205.1 
1997 510,000 6,763.9 510,000 6,763.9 6.  Cattle 
1998 Countervailing 
budgetary 
payments 456,000 5,700.0 456,000 5,700.0 
1996   536,500 7,971.8 536,500 7,971.8 
1997 540,000 7,161.8 540,000 7,161.8 7.  Sheep 
breeding 
1998 Countervailing 
budgetary 
payments 413,000 5,162.5 413,000 5,162.5 
  
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 12 Supporting Table DS:8 
 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998 
 
Product Specific Equivalent  Measures of Support 
 
Description 
of basic 
products Calendar yearMeasure 
type(s)  Applied 
Administered 
Price Production 
eligible to 
receive the 
applied 
administered 
price Market price 
supporting 
budgetary 
outlays Equivalent 
measures of 
support 
(including 
calculation 
details) Non-Exempt 
Direct 
Payments Other 
Product-
Specific 
Support Associated 
fees/levies Total 
monetary 
value of 
equivalent 
commitment Data Source 
1 2 3 4 5 6 7 8 9 10 11 12 
   
Such type of subsidies were not granted 
  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 13Supporting Table DS:9 
 
DOMESTIC SUPPORT: KAZAKHSTAN 
REPORTING PERIOD: Calendar Years 1996-1998 
 
Non-Product-Specific AMS 
 
Non-product-specific 
budgetary outlays Total Non-Product-Specific 
Support  Measure type(s) Program Description Calendar 
year KZT 000s US$ 000s Other non-product-
specific support (include 
calculation details) Associated 
fees/levies KZT 000s US$ 000s Data Source 
1 2 3 4   5 6 7   8 
1996 242,100  3,597   242,100  3,597  
1997 200,528  2,660   200,528  2,660  1.  Fertilizers Reduction of fertilization costs for 
agricultural producers 
1998 100,000  1,250   100,000  1,250  Ministry of 
Agriculture 
1996 436,100  6,480   436,100  6,480  
1997 425,000  5,637   425,000  5,637  2.  Plant 
Protection Reduction of costs incurred by 
agricultural producers using 
pesticides  1998 400,000  5,000   400,000  5,000  Ministry of 
Agriculture 
1996 22,250  331   22,250  331  
1997 0  0   0  0  3.  Mixed Fodder Reducti on of costs incurred by 
agricultural producers by the 
purchase of mixed fodder 1998 31,000  388   31,000  388  Ministry of 
Agriculture 
1996 299,200  4,446   299,200  4,446  
1997 150,000  1,989   150,000  1,989  4.  Farm 
Development Soft loans granted to forms for a 
term of five years at the interest 
rate of 10 per cent per annum for 
implementation of new 
production technologies, purchase 
of agricultural machinery, 
breeding stock, and selected 
seeds, etc.   1998 536,604  6,708   536,604  6,708  Ministry of 
Agriculture 
1996 5,333,373  79,248   5,333,373  79,248  
1997 72,545,326  962,140   72,545,326  962,140  5.  Deferred 
Debts Given the current grave 
conditions and insolvency of 
agricultural producers, their debts 
relating to centralized and target-
oriented loans, loans for wages 
payments and working capital, 
purchase of petroleum products 
and electric energy, 
extrabudgetary funds, etc. have 
been rescheduled    1998 88,308,766  1,103,860   88,308,766  1,103,860  Ministry of 
Agriculture, 
Ministry of 
Finance, 
Ministry of 
Economy, 
ExImBank, 
KazMunaigas, 
etc.  
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 14 Non-product-specific 
budgetary outlays Total Non-Product-Specific 
Support  Measure type(s) Program Description Calendar 
year KZT 000s US$ 000s Other non-product-
specific support (include 
calculation details) Associated 
fees/levies KZT 000s US$ 000s Data Source 
1 2 3 4   5 6 7   8 
1996   26,197,487  389,264   26,197,487  389,264  
1997   0  0   0  0  6.  Forgiven 
Debts Under the Resolution of the 
Government of the Republic of 
Kazakhstan of 28 May 1995, 
50 per cent of the principal and 
the overall amount of past due 
interest, fines, and penalties have 
been forgiven. 1998   0  0   0  0  Ministry of 
Agriculture 
1996  32,530,510  483,366   
1997  73,320,854  972,426   Total non-product-specific support 
1998  89,376,370  1,117,206   
  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 15ANNEX 1 
 
Deferred and Overdue Debts of Agricultural Producers  
 
1996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Forgiven Debts 
Forgiven Debts, under the 
Resolution of the Government of the Republic of Kazakhstan No. 651 of 28 May 1996 'On 
Agreement of 17 May 1996 
Concluded Between the Ministry of Finance of the 
Republic of Kazakhstan and the 
State Foundation for Agricultural Support'  
 26,197,487 389,264 0 0 0 0 100 per cent of pa st due interest and 50 per cent 
of the entire amount of debts of agricultural producers has been foregiven, namely: principal of agricultural producers, debt relating to target-
oriented loans secured by the Ministry of 
Finance, debts relating to target-oriented loans secured by oblast administrative bodies, overdue 
debts relating to short-term loans accounted for in 
banks on the balance account No. 620, loans 
issued for payment of wages of agricultural 
producers, loans issued to meet debit balance of 
the intra-republican netting of enterprises.  The Ministry of Finance takes a unilateral decision 
on cancellation of debts of agricultural producers 
before the State Foundation for Agricultural 
Support, regarding debts for which it has received 
the right of reclaim.  
Deferred Debts 
Decree of the President of the 
Republic of Kazakhstan No. 1578 of 14 February 1994 
'On Support of Agricultural 
Enterprises in 1994'   0 1,161,100 15,399 1,161,100 14,831 Deferral has been granted to debts of agricultural 
producers, irrespective of the form of ownership, overdue debts relating to bank loans (except 
target-oriented loans for the renewal of working 
capital) allocated from centralized credit resources of the National Bank of the Republic of 
Kazakhstan as of 1 January 1994. Settlement of debts shall start on 1 January 1999 in 
the form of equal instalments for a term of five years. No interest shall be accrued.   
Resolutions of the Government 
of the Republic of Kazakhstan 
No. 671 of 3 June 1996 'On Measures Relating to State 
Support of Energy Supply and 
Agricultural Ente rprizes of the 
Republic of Kazakhstan' and 
No. 1076 of 22 October 1998 
'On  Rescheduling of Fines and Penalties Payable by 
Agricultural Producers'     4,271,184 56,647 4,949,134 63,215 Tax arrears of agricultural producers payable to 
the budget rescheduled for collection in 1 year.    
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 16 1996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Overdue debts 
Resolution of the Government 
of the Republic of Kazakhstan 
No .651 of 28 May 1996 'On Agreement of 17 May 1996 
Concluded between the Ministry 
of Finance of the Republic of Kazakhstan and the State 
Foundation for Agricultural 
Support'   5,333,373 79,248 5,286,460 70,112 5,256,128 67,137 The Ministry of Finance has transferred to the 
State Foundation for Agricultural Support the 
right to claim that end borrowers pay 50 per cent of the principal, in pa rticular: principal of 
agricultural producers, taget-oriented loans, 
secured by oblast administrative bodies, overdue debts relating to short-term loans, accounted for 
in banks on the balance account No. 620, loans 
issued for payment of wages of agricultural producers, loans issued to  meet debit balance of 
the intrarepublican netting of enterprises as of 1 
March 1995. The Foundation concludes individual contracts with 
borrowers on their obligations to settle debts 
relating to the specified loans. 
Resolution of the Government of the Republic of Kazakhstan No. 1719 of 14 December 1995 
'On Transfer of Debts for 
Centralized and Target-Oriented Loans to the State Foundation 
for Agricultural Support'   0 796,900 10,569 796,268 10,171 The Ministry of Finance, the Ministry of 
Agriculture, the State F oundation for Agricultural 
Support of the Ministry of Agriculture, jointly 
with the National Bank of the Republic of 
Kazakhstan have effected the transfer to the above Fund of the entire volume of debts relating 
to centralized and target-o riented loans issued to 
JSCs Selmash, Ken Dala, Onim, Kazagroremmash, Republican Association 'Kazzoovetsnab', the National Joint-Stock 
Company 'Kunarlylyk', as well as enterprises - 
former parts of the National Joint-Stock Company 'Tagam', the settlement of which is due 
after 1 March 1995.    The Foundation concludes individual contracts with 
borrowers on their obligations to settle debts 
relating to the specified loans.  
  WT/ACC/SPEC/KAZ/6/Rev.1
 Page 171996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Resolution of the Government 
of the Republic of Kazakhstan 
No. 1130 of 17.1996 'On Settlement of Financial 
Obligations in the Agricultural 
and Energy Sectors of the Republic of Kazakhstan'  0 22,775,795 302,066 16,307,035 208,290 One of the main constraints to the development 
of the agricultural and energy sectors of the 
national economy crippling all efforts to overcome the ongoing crisis is represented by 
vast amounts of accumulated payables and 
receivables for petroleu m products and energy, 
produced and consumed between 1993 and 1995. 
In order to settle debts of agricultural producers 
for electric energy and petroleum products consumed in 1994-1995, create optimal 
conditions for their post-privatization operation, 
as well as to enable priv atization of enterprises 
operating in the energy and oil and gas sectors, 
the Government of the Republic of Kazakhstan 
has transferred the entire volume of debts of agricultural producers before enterprises of the 
Ministry of Energy and Coal Industry 
accumulated between 1994-1995 for consumption of heat and electricity to the State 
Foundation for Agricultural Support, based on 
comparative checks with subsequent write-off as losses of energy enterprises following their privatization.   Debts for consumed energy transferred to the State 
Foundation for Agricultural Support are written of
f 
balance of the Fund following privatization o f 
energy enterprises by offsetting them against 
financial performance  of the latter.  
Resolutions of the Government of the Republic of Kazakhstan 
No. 1147 of 22 July 1997 'On Measures Relating to Supply of 
Petroleum Products for Sowing 
and Harvesting Activities in 1997', and No. 187 of 9 March 
1998 'On Measures Relating to 
Supply of Petroleum Products for Sowing Activities in 1998'    0 4,417,998 58,594 4,151,923 53,033 Overdue debts of agricultural producers for 
petroleum products, supplied by the National 
Company 'KazakhOil', OJSC 'Mangystaumunaygas', OJSC 
'Karazhanbasmunaygas', OJSC 'Kaztransoil' for 
sowing and harwesting activities. At present, given the in solvency of agricultural 
producers, debts of this category have not been 
settled and remain on balance of specified national oil companies. The Government of the Republic o
f 
Kazakhstan has taken no decisions to address the 
issue.   
 WT/ACC/SPEC/KAZ/6/Rev.1 
Page 18 1996 1997 1998 Organization KZT 000s US$ 000s KZT 000s US$ 000s KZT 000s US$ 000s Description Deferral/Forgiveness Mechanisms  
Overdue debts of agricultural 
producers before the Fund of 
Economic Reforms of the Ministry of Economy of the 
Republic of Kazakhstan.  0 2,100,085 27,853 5,555,205 70,957 Overdue debts of agricultural producers for loans 
granted by the Fund of Economic Reforms of the 
Ministry of Finance of the Republic of Kazakhstan. The Fund of Econmic Reforms has 
been founded to provide investment support of 
the ongoing process of economic reforms targeted at the development of an efficient 
society-oriented market economy and enhancing 
its competitive power. The loans in question have 
been granted under Resolutions of the 
Government of the Republic of Kazakhstan 
No.614 of 15 July 1993 'On Use of Resources of the Fund of Economic Reforms of the Republic 
of Kazakhstan in 1993' and No. 105 of 27 
January 1994 'On Use of Resources of the Fund of Economic Reforms of the Republic of 
Kazakhstan in 1994'. At present, given the in solvency of agricultural 
producers, debts of this category have not been 
settled and remain on balance of the CJSC Rehabilitation Fund of the Ministry of Finance o
f 
the Republic of Kazakhstan. The Government o f 
the Republic of Kazakhstan has appointed an intergovernmental committee charged with 
collection and restructuring of loans granted from 
the Republican budget and funds allocated from the Republican budget in the framework o
f 
nongovernmental external loans, secured by the 
Republic of Kazakhstan. The Committee is engaged in debts rescheduling on a case-by-case basis for 
each economic agent. 
Debts of agricultural producers 
before  state energy distribution 
companies for electricity, consumed in 1993-1995.  0 4,126,943 54,734 7,453,640 95,206 Oustanding debts of agricultural producers before 
state energy distribution companies for 
electricity, consumed in 1993-1995 At present, given the in solvency of agricultural 
producers, debts of this category have not been 
settled and remain on balance of the Fund o
f 
Economic Reforms. The Government of the 
Republic of Kazakhstan has taken no decisions to 
address this issue.    
Debts of agricultural producers 
before the Republican budget 
for non-governmental external 
loans, secured by the State     17,979,045 238,449 32,977,467 421,222 Outstanding debts of agricultural producers 
before the Republican budget relating to non-governmental loans, secured by the Government 
of the Republic of Kazakhstan  At present, given the in solvency of agricultural 
producers debts of this category have not been settled. The Republic of Kazakhstan has appointed 
an intergovernmental committee charged with 
collection and restructuring of loans granted from the Republican budget and funds allocated from the 
Republican budget in the framework o
f 
nongovernmental external loans, secured by the Republic of Kazakhstan. The Committee is engaged 
in debts rescheduling on a case-by-case basis for 
each economic agent. 
Debts of agricultural producers 
before the national 
extrabudgetary funds (Road 
Fund, Employment Promotion 
Fund, Social Insurance Fund, Pension Fund)   13,901,000 184,363 14,650,000 187,125 Outstanding debts of agricultural producers 
before extrabudgetary funds (Road Fund, 
Employment Fund, Social Insurance Fund, 
Pension Fund). For description of the above 
funds, see attachment.  The Government has taken no decisions on debts o f 
this category. 
Total 5,333,373 79,248 76,816,510 1,108,787 93,257,900 1,165,724    WT/ACC/SPEC/KAZ/6/Rev.1 
 Page 19 
  
 ANNEX 2 
Extrabudgetary Funds of the Republic of Kazakhstan
 
 The National Employment Fund (Resolution of th e Cabinet of Ministers of the Kazakh Soviet 
Socialist Republic of 30 April 1991 No. 277 "On Establishment of the National Employment Fund") 
(hereafter – the Employment Fund) was established to  finance measures taken to implement state policies 
on employment and enhancement of efficiency of state employment services. The Employment Fund 
represented an independent financial and banking system wi th a single current account. Its funds did not 
comprise a part of the State budget.  Enterpri ses, agencies, organizations, and other employers, 
irrespective of the form of ownership and type of economic activities, were required to transfer monthly 
mandatory contributions to the Employment Fund.  The amount of contributions was calculated based on 
the wage-bill and adjusted annually by the Government of the Republic of Kazakhstan, while the costs 
incurred by employers were charged against production costs of goods (works, services).        
 The National Social Insurance Fund of the Republic of Kazakhstan (the Decree of the President 
of the Republic of Kazakhstan No. 2837 of 18 March 1992 "On Establishment of the National Social Insurance Fund of the Republic of Kazakhstan") was established to effect payment of temporary 
disablement benefits, maternity benefits, child benefits,  death allowances, treatment and rehabilitation 
allowances, provide services to the employed population of the Republic of Kazakhstan and their 
families, and for other purposes relating to the st ate social insurance.  The Fund was managed by the 
Ministry of Social Protection of the Republic of  Kazakhstan. Enterprises, agencies, organizations, and 
other employers, irrespective of the form of ownersh ip and type of economic activities, were required to 
transfer monthly mandatory contributions to the Fund.  The amount of contributions was adjusted annually by the Government of the Republic of Kazakhstan, while the costs incurred by employers were charged against production costs of goods (works, services).  
 The Pension Fund of the Republic of Kazakhstan (Resolution of the Cabinet of Ministers of the 
Republic of Kazakhstan No. 1120 of 6 October 1994) fo rmed an integral part of the system of social 
protection of the population of the Republic of Kazakhstan, its funds being used for pension payments to 
workers of retirement age.  The Fund was managed by  the Ministry of Social Protection of the Republic 
of Kazakhstan. Enterprises, agencies, organizations,  and other employers, irrespective of the form of 
ownership and type of economic activities, were requ ired to transfer monthly ma ndatory contributions to 
the Fund.  The amount of contributions was adjusted annually by the Government of the Republic of Kazakhstan, while the costs incurred by employers were charged against production costs of goods (works, services).     
 The Road Fund of the Republic of Kazakhstan (t he Decree of the President of the Republic of 
Kazakhstan No. 2701 of 21 December 1995 "On Road Fund") was established to finance costs relating to maintenance, construction, and reconstruction of motorways, and facilities.  The Road Fund received mandatory contributions of enterprises, agencies, org anizations, and other employ ers, irrespective of the 
form of ownership and type of economic activities.  The value of contributions was calculated based on 
the annual aggregate income.  All of the above were required to effect payments at a rate of 0.1 per cent 
of the annual aggregate income of a legal entity, irrespective of the type of economic activities. 
 
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