December 2018 – Kinstellar is proud to have contributed to the 2018 edition of the Pillsbury World Aircraft Repossession Index with information about Kazakhstan. Now in its third year, the Index provides expert analysis of the legal environment in 102 jurisdictions regarding the repossession and export of aircraft assets.
Although Kazakhstan's overall score of 46% places it in the higher risk category, the Index highlights several positive trends in the country for aircraft financiers. These include Kazakhstan's accession to the Cape Town Treaty and its related Aircraft Protocol in 2011, which has led to the incorporation of aircraft deregistration provisions into local legislation. As a result, the country now qualifies for the reduction of the minimum premium rates of export credit financing arrangements as outlined in the 2011 OECD Aircraft Sector Understanding. Kazakhstan’s accession to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 1995 further bolsters the country’s overall Index score.
Nevertheless, with regard to other relevant procedures, Kazakh legislation relating to aircraft financing requires further development. For example, with a few exceptions the enforcement of foreign court judgments remains problematic due to the absence of bilateral international agreements. Self-help remedies remain unavailable under Kazakh law, and local insolvency laws currently do not sufficiently protect aircraft lessors.
For more information, please contact Kuanysh Kanlybayev, Managing Associate, at .