Credit debts in Kazakhstan increased

As of September 1, 2022, the amount of all loans in Kazakh banks amounted to 20.7 trillion tenge, the National Bank of Kazakhstan said, according to Forbes.kz

Loans to individuals accounted for most of the total amount – 12.7 trillion tenge. The growth in the volume of loans for the year amounted to 18.6%.

Experts of the Association of Financiers of Kazakhstan (AFK) explained that one of the reasons for the growth was the increase in the pace of preferential lending, writes Forbes.kz.

“Before talking about the indebtedness of the population of Kazakhstan, it is necessary to determine the reasons for the growth in the volume of loans. Thus, in January-August of this year, the volume of loans to individuals increased by 2.0 trillion tenge (+19% by January 1, 2022), and 833.3 billion of them fell on the growth in the volume of mortgage loans (+25%) associated with the implementation government housing programs. 891.1 billion of them are consumer loans (+15%). We also note that the structure of consumer loans also takes into account car loans under a preferential program, for which 100 billion tenge was allocated this year alone, as well as the purchase of goods by Kazakhstanis in interest-free installments,” the AFK noted.

Inflation is the second reason for the growth in lending, which leads to a nominal increase in the size of the loan due to higher prices for real estate, cars, equipment and other goods. It turns out, a vicious circle, they say in the AFK: the rise in the cost of goods leads to a nominal increase in credit, and the growth in lending contributes to the acceleration of inflation.

As of September 1, 2022, the amount of overdue retail loans that have not been paid for more than 90 days amounted to 434.0 billion tenge. This is 81.4 billion tenge more than on January 1, 2022, the National Bank of Kazakhstan reports.

$1 costs 477 Kazakh tenge. The GDP of Kazkahstan is almost $191 mlrd. Populations is 19 mln people.

inozPRESS.kg,
Oct. 13, 2022