Tokayev instructed to take measures on reducing debt burden

“The Government of the Republic of Kazakhstan, on a one-time basis, must take measures to repay unsecured consumer loans in second-tier banks and microfinance organizations on the following terms:

1) debtors are families with many children, families receiving payments on the occasion of the loss of a breadwinner, families with disabled children, the disabled since childhood over 18 years old, recipients of state targeted social assistance; orphans, children left without parental care, under the age of twenty-nine, lost their parents until the age of majority;

2) the total loan debt does not exceed 3,000,000 (three million) tenge as of June 1, 2019;

3) the amount of repaid debt consisting of the principal debt and the accrued interest on it does not exceed 300,000 (three hundred thousand) tenge per borrower as of June 1, 2019”, the decree reads.

The Head of State instructed the Government and the National Bank:

1) to take measures on debt amortization of Kazakh citizens who have unsecured consumer loans in banks and microfinance organizations, accrued fines and penalties as of July 1, 2019;

2) to take other measures to implement this decree together with the Mayor’s and Governor’s Offices of the cities of Nur-Sultan, Almaty, Shymkent and the regions.

The National Bank of Kazakhstan will take a set of regulatory measures to strengthen the responsibility of financial organizations, including:

1) prohibition of the accrual of penalties, commissions and other payments related to the issuance and servicing of the loan for all unsecured consumer loans of individuals with overdue debts of more than 90 days;

2) ban on the provision of loans to citizens with incomes below the subsistence minimum;

3) additional regulatory measures in the issuance of unsecured consumer loans.

Control over the execution of the decree is entrusted to the Administration of the President of Kazakhstan and enters into force from the date of signing.