PRESIDENT SIGNS AMENDMENTS GRANTING NATIONAL BANK PRE-EMPTIVE RIGHT TO PURCHASE REFINED GOLD
Astana. July 9. Interfax-Kazakhstan - The President of Kazakhstan Nursultan Nazarbayev has signed into law the bill "On Amendments to Some Laws Regulating Operations of Kazakhstan's National Bank, the Financial Market and the Financial Organizations," the presidential press office said on Friday.
Earlier Beisengali Tajiyakov, the deputy head of the National Bank, told the Finance and Budget Committee of the Majilis (the lower chamber of the Kazakh parliament) that the proposed amendments to the Law on the National Bank will allow the Bank to exercise a pre-emptive right to purchase refined gold "in order to protect the national interests in such a strategic area as gold extraction, production and sales."
The National Bank will also be authorized to provide property valuation, including publicly owned refined gold, precious metals and stones, and jewelry, he added.
The amendments will prohibit the creation of specialized banks that will not be able to work in a competitive environment without the government's support. However, the previously organized Housing Construction Savings Bank and Development Bank Kazakhstan will not be closed.
The mechanism allowing for a pre-emptive right to purchase refined gold was introduced on January 1, 2012 though the National Bank had started purchasing gold in November 2011.
The presidential decree dated July 21, 2011 "In Pursuance of the Decisions the EurAsEC Interstate Council Made on November 27, 2009" was adopted after Kazakhstan introduced a mechanism for non-tariff regulation in the precious metal market within the Customs Union. Recently, Kazakhstan started to control imports and exports of precious metals and commodities containing precious metals, and the government was authorized to exercise a pre-emptive right to purchase refined gold ingots that are going to be exported in order to replenish the gold and forex reserves of the National Bank.
The National Bank Chairman Grigory Marchenko said earlier that the National Bank would purchase all refined gold produced in the republic in 2012-2013.