Activity of microcredit organizations grows in Kazakhstan

Business Materials 17 August 2015 15:35 (UTC +04:00)
In the first quarter of 2015, activity of microcredit organizations increased in Kazakhstan

Baku, Azerbaijan, Aug. 17

By Elena Kosolapova - Trend:

In the first quarter of 2015, activity of microcredit organizations increased in Kazakhstan, analytical service Ranking.kz said.

The message said that the sector of microcredit organizations in January-March 2015 increased lending to small business in Kazakhstan by 26 percent (after declining to 11 percent in the first quarter 2014). This year, the resumption of growth in activity in lending to small and medium-sized businesses is also observed in the banking sector. Microcredit organizations over the past five years showed the tendency of business lending growth in Kazakhstan.

The structure of the loan portfolio of microcredit organizations in Kazakhstan diversifies: if two years ago, the share of business loans in the total loans disbursed amounted to 70 percent, at the end of the first quarter of 2015 it reached 55 percent. This decrease is due to an increase in the share of microcredit organizations in consumer loan portfolio.

The leader in the sector of lending to business is KMF, which has 58.3 percent of all issued loans, or 16.9 billion tenge (188.05 tenge = $1) accounted for this type of lending.

This year microcredit organizations of Kazakhstan increased the portfolio of loans to business goals by 3.1 billion tenge, and this was the biggest increase in one quarter during the past five years.

Microcredit organizations of Almaty showed the greatest growth in comparison with January-March 2014, 2.2 billion tenge, or 70 percent of the total increase. The second place belongs to the South Kazakhstan region with 651.2 million tenge. The East Kazakhstan region takes third place where the volume of microcredit on business purposes increased by 253.3 million tenge in comparison with the same period last year.

Edited by CN


Follow the author on Twitter: @E_Kosolapova