ASTANA: The French Development Agency Group (AFD) has officially commenced its operations in Kazakhstan following the ratification of an agreement by the lower house of the Kazakh Parliament. This development marks a significant step in the collaboration between France and Kazakhstan, facilitating the agency’s activities within the country.

According to Trend News Agency, the agreement was signed on November 1, 2023, in Astana and sets the operational framework for AFD in Kazakhstan. The agreement defines the legal, tax, and financial conditions under which the agency will operate. AFD is authorized to provide funding in multiple currencies, including euros and US dollars, and offer various forms of financial and technical assistance. This assistance encompasses consultancy services, technical support, and training for both governmental and private entities.

The agreement grants AFD the legal capacity to operate in Kazakhstan, allowing it to acquire and manage movable and immovable assets, with the exclusio
n of land, which foreign legal entities are prohibited from privately owning. Additionally, the group is permitted to engage in legal proceedings when necessary. The agreement notably exempts AFD from corporate income tax and withholding taxes related to its activities in Kazakhstan. The group is also allowed to establish a representative office to streamline its operations, although it will not hold the status of a bank or financial institution, thus exempting it from local banking regulations.