Fines and penalties for loans on nearly two million borrowers written off in Kazakhstan

Finance Materials 29 August 2019 18:49 (UTC +04:00)

Baku, Azerbaijan, August 29

By Nargiz Sadikhova – Trend:

Banks and microfinance organizations of Kazakhstan completed writing off fines and penalties for unsecured consumer loans to 1,192,834 borrowers for a total of 33.620 billion tenge, Deputy Chairman of the National Bank of Kazakhstan Oleg Smolyakov said, Trend reports with reference to the press office of prime minister of Kazakhstan.

He noted that fines and penalties were written off primarily at the expense of banks and microfinance organizations own funds.

On August 15, 2019, the Problem Loans Fund repaid banks and microfinance organizations 30 percent of the amount of written off debts on fines and penalties for 10.086 billion tenge.

“Thus, the work on writing off penalties and fines to all citizens as of July 1, 2019, has been completed,” said Smolyakov.

Based on the lists provided by the Ministry of Labor and Social Protection of the Population as of August 20, 2019, 507,363 citizens, who will be repaid 105.174 billion tenge, were identified.

“Today, money has been transferred to banks and microfinance organizations, and debt repayment is expected in the near future. Until September 5, banks and microfinance organizations will notify borrowers who meet the criteria specified in the Decree about the repayment of their debt,” Smolyakov said.

He emphasized that to pay off the debt, citizens do not need to contact banks and microfinance organizations, as all work will be carried out by credit organizations independently.

Within the framework of the implementation of the decree of the president dated June 26, 2019 “On measures to reduce the debt burden of citizens of the Republic of Kazakhstan”, the National Bank, State Credit Bureau JSC, Fund for Problem Loans JSC together with second-tier banks and microfinance organizations decided to write off the fines and penalties on unsecured consumer loans at banks and microfinance organizations for all Kazakhstanis accumulated by July 1, 2019.

(1 USD = 387.55 KTZ on August 29)


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