Kazakh microfinance organizations improve quality of loan portfolio

Business Materials 1 August 2016 15:29 (UTC +04:00)

Baku, Azerbaijan, August 1

By Elena Kosolapova - Trend:

Kazakh microfinance organizations decreased share of non-performing loans from 7 percent to 6 percent in the first quarter of 2016, Ranking.kz analytical service said in its report, published on August 1.

Meanwhile the loan portfolio of Kazakh banks is deteriorating - the volume of non-performing loans has increased from 7 percent to 8 percent in the first quarter of 2016 and hit 8.5 percent at the end of May.

Retail credits amount to 97 percent of the loan portfolio of Kazakh microfinance organizations. The quality of retail credits issued by microfinance organizations is much better that the quality of the retail credits issued by the banks – 6 percent overdue loans against 10 percent overdue loans at the end of May.

The biggest microfinance organization in Kazakhstan is KMF. It issued 40 percent of the all the microfinance organizations’ loans. The quality of the loan portfolio of this organization is very high – only 1.9 percent of its loans to borrowers were overdue.

Edited by SI

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