Kazakhstan is preparing important changes in the field of evaluation activities. The Ministry of Finance has initiated amendments to the legislation on valuation activities, which should improve the quality of valuation services, open up new opportunities for Kazakhstani appraisers in the EAEU space, expand access to services for citizens and businesses, stimulating economic growth and investment. Anar Kaliyeva, Director of the Accounting Methodology, Audit and Evaluation Department of the Ministry of Finance of the Republic of Kazakhstan, told about why the reform is needed, what innovations await the market and how they will affect the investment climate of the country.

- Why should we make amendments to the legislation in valuation activities?

Today, propertyvaluationplaysakeyroleinpurchase and saletransactions,loans,investments, andlawsuits.Therefore, it is importantthat the proceduresareastransparent,predictable as possible andprotect the interests of bothbusinessesandcitizens.

So, on December10, 2021, by Decision of the SupremeEurasianEconomicCouncilNo.23, GeneralApproachesto the conditions for carrying out evaluationactivitieswithin the framework of the functioning of the singlemarket of services(hereinafter referred to as GeneralApproaches) were approved.

Inaccordancewiththeseapproaches, eachEAEUcountry is required to amenditslegislationonvaluationactivities.Andonlyaftertheparties have made appropriatechanges, it is planned to open a singlemarket for propertyvaluationservices.

Inthisregard,we are amendingtheLaw"OnValuationActivitiesin the Republic of Kazakhstan"regarding the provision of propertyvaluationserviceswithin the EAEU by appraisers,bothKazakhstaniandappraisers from otherEAEUmember States.

Appraisers of oneEAEUmember state will be able to carry out theiractivitieson the territory of otherEAEUmember States withoutbarriers,exemptions,restrictions,additionalrequirementsandconditions.

Thismeansthat the valuationcarried out inourcountrywill be recognizedinothercountries of the Unionwithout the need for repeatedprocedures.Such a step will greatlysimplify cross-bordercooperation,allowbusinesses to savemoneyonvaluation,make the marketmoreattractivetoinvestorsandcreateconditionsfor the freemovement of capital. As aresult, allmarketparticipantsbenefit:fromsmallbusinessestolargeinternationalcompanies.

- What are your main goals when making amendments  to the law on valuation activities?

- The main task is to make the system more modern and understandable. The amendments to the Law will allow appraisers to carry out their activities on the territory of the EAEU countries.

 - How will it work in practice?

-Amendments to theLawonValuationActivities will simplify the life of bothbusinessesandindividuals.Imagine the situation: a Kazakhstaniappraiser has assessed a real estateobjectforcollateralorsale.Nowthisassessment will be automaticallyrecognizedinotherEAEUcountries. For example,inArmeniaorRussia.Thatis,onescoreisoneresultfor the entireUnion.Thisnotonlyreducescosts,butalsomakesbusinessprocessesfasterand more predictable.

Inconnectionwith the opening of a singlemarket for propertyvaluationserviceswithin the EAEU, the Law has been supplemented with a newchapter"Activitieswithin the frameworkof the singlemarket of services".Thischapterregulates the dutiesandresponsibilities of Kazakhstaniappraisers,appraisers of otherEAEUmember states and,accordingly, the Chamber of Appraisers.

These changes will allow our appraisers and non-resident appraisers to carry out their activities on the territory of the Union.

 - How will the amendments to the law affect the domestic market?

Each chamber of appraisers will implement a system of internships and regular training. This will allow young professionals to adapt more quickly to market requirements, while experienced ones will constantly update their knowledge in accordance with national assessment standards.

 In addition, the proposedamendments alsomean an improvement in the quality of services. As aresult,this will create the basisfor a morestable real estate,lendingandinvestmentmarket.

- How do the appraisers themselves feel about the changes?

-Generallypositive.Amendments intheimplementation of evaluationactivitieswithintheEAEU will open up newopportunitiesforKazakhstaniappraisers,expandaccesstoservicesforcitizensandbusinesses,stimulatingeconomicgrowthandinvestment.

- How will these amendments affect investments in Kazakhstan?

- Transparency, predictability and trust in the asset valuation system are important for any investor, because it is on this that the accuracy of calculations, the validity of transactions and the minimization of risks depend.

 Amendments in the legislationonevaluationactivities will strengthen the image of Kazakhstanas a reliablejurisdictionwherelawsworktransparently,specialists are competent,and the evaluationsystemmeetsinternationalrequirements.Allthisincreasesconfidence in theeconomyandopens up newopportunitiesforattracting long-termcapital.

The adoption of the draft law on the introduction of property valuation services will open up new opportunities for Kazakhstani appraisers, expand access to services for citizens and businesses, stimulating economic growth and investment. Also, the draft Law provides for the improvement of existing standards, the elimination of excessive requirements and contradictions, which will lead to an improvement in the legislation of the Republic of Kazakhstan on valuation activities and more effective regulation of the industry.

Source : https://www.gov.kz/memleket/entities/minfin/press/news/details/1171599?lang=kk