BAKU, Azerbaijan, Dec. 25
Trend:
The anti-crisis measures taken by the Kazakh Agency for Regulation and Development of the Financial Market during the period of quarantine and the state of emergency made it possible to timely respond to crises, soften its course, absorb the consequences and transform them into positive changes, the agency told Trend on Dec. 25.
"The period of the state of emergency and quarantine was very difficult for the economy, especially for the population, small and medium-sized businesses and the financial market," the agency added.
"Therefore, the agency during the state of emergency on behalf of the president of Kazakhstan took a number of measures to support the financial situation of the population and businesses experiencing financial difficulties," the message said.
To prevent the deterioration of the financial situation of borrowers experiencing financial difficulties, a requirement was made for banks and non-bank credit institutions, including microfinance organizations, pawnshops, credit partnerships, to grant deferred loan payments for a period of 90 days for individuals and for small and medium-sized enterprises having loans. The postponement was made from March 16 through June 15, 2020.
The deferral of loan payments is not a reason for the deterioration of the borrower's credit history and the provision of negative information about the borrower to the credit bureaus.
A ban was imposed on the accrual of remuneration on unsecured consumer loans and microcredits of citizens for which there is a delay in payments for more than 90 days, as well as a ban on the accrual of fines and penalties for late payments upon bank loan and microcredit agreements of citizens whose financial condition deteriorated as a result of a state of emergency.
During the period of the deferral the credit organizations stopped claiming work related to borrowers who were granted a deferral for borrowers to be able to repay loans after a deferral.
The legislative amendments envisaging the introduction of regulation in relation to all legal entities issuing loans to citizens, including online lending companies, credit partnerships and pawnshops within the Law "On Microfinance Activity" entered into force since January 1, 2020. The concept "an organization carrying out microfinance activity", which includes microfinance organization, credit partnership and pawnshop, has been introduced.
The legal entities, individuals were to be registered in the agency till July 1, 2020 to continue to carry out activity on lending to citizens. Those who violated this requirement since July 1, 2020 are subject to compulsory liquidation or reorganization, excluding the activity of issuing loans to individuals.
"The measures taken in a timely manner by the agency made it possible to neutralize the shocks from the negative impact of COVID-19 on the country's economy," the message added.
"The agency, as well as the entire government face with the task of continuing the work in the post-crisis period to develop a stable and competitive financial system of Kazakhstan, stimulate investment activity, strengthen confidence in the financial sector both on the part of investors and on the part of the population," the message said.