Kazakh microfinance organizations increase funding volume

Central Asia Materials 20 November 2017 15:54 (UTC +04:00)

Baku, Azerbaijan, Nov. 20

By Nigar Guliyeva Trend:

Kazakhstan's microfinance organizations further increased lending volumes.

During the first half of 2017, such companies issued 66.3 percent more loans than during the same period in 2016, and their total loan portfolio reached 131.4 billion tenge, Kazinform reports.

In January-June 2017, citizens of Kazakhstan were issued 102.8 billion tenge via a simplified procedure of lending (including online).

Analysts expect the volume of the microfinance market in 2017 to reach a volume of 205 - 206 billion tenge.

The most active clients of microfinance organizations are still private entrepreneurs, who can borrow funds as retail customers, which simplifies the procedure for lending. They actively use the help of microfinance professionals to cover small expenses (payment of goods to suppliers, liquidation of cash gaps, etc.).

Such a combination of factors as availability of credit resources offered by microfinance organizations and planned policy of the Government of Kazakhstan to create an enabling environment for the development of the private business of the population should stimulate entrepreneurial activity, which will positively affect the domestic economy of the country, analysts say.

The official exchange rate for November 20 is 332.21 KZT / USD.