BAKU, Azerbaijan, Dec.17
By Nargiz Sadikhova - Trend:
Starting from Jan. 1, 2020, Kazakhstan is introducing a prohibition on allocation of loans to citizens, whose income is below the living wage, Trend reports referring to the document published on the website of Kazakhstan's parliament.
According to the document, in order to prevent the overborrowing of citizens and ensure optimal growth rates of consumer lending, the National Bank of the country is taking regulatory measures.
“On July 3, 2019 Kazakhstan’s President Kassym Jomart Tokayev signed the law ‘On introduction of amendments and additions to some legislative acts of Kazakhstan on issues of management and development of financial market, microfinancial activities and taxation,” the report said.
The document oversees introduction of a regulation and supervision of all legal entities providing loans to the population since Jan. 1, 2020.
“Thus, all lending legal entities will operate in single managed field, and will maintain full spectrum of requirements on borrowers protection, such as requirement to the lending agreement conditions, marginal interest rates and others,” the document read.
At the same time, from Jan. 1, 2020, Kazakhstan is introducing a prohibition on allocation of loans to citizens income of whom is below the living wage, as well as increases requirements to capital adequacy of banks, which will decrease economic incentives for banks to issue unsecured loans, especially to citizens with low income.
“Furthermore, amendments to the legislative acts on prohibition of charging penalties and fees for all unsecured consumer loans of individuals after 90 days of delay have been developed. This will limit the constant growth of unsecured consumer loans,” the document said.
These amendments are included in the draft of the Kazakhstan’s law: ‘On introduction of amendments and additions to some legislative acts of Kazakhstan on issues of the administrative-territorial structure of Kazakhstan, and improving the system of public administration and inter-budget relations’.
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