BAKU, Azerbaijan, September 29. The bank lending volume to Kazakhstan's economy amounted to 20.68 billion tenge ($43.3 million) at the end of August 2022, increasing by 1.6 percent over the month (growth of 25.7 percent y/y), Trend reports citing the National Bank of the Republic of Kazakhstan.
Against the backdrop of a decrease in overall business activity and Russian bank subsidiaries' lending activity, the loan portfolio of legal entities declined by 0.5 percent over the month (mainly due to the reduction of foreign currency credits). Meanwhile, the loan portfolio of second-tier banks of legal entities, excluding Russian subsidiaries, grew by 0.1 percent in August 2022 (in tenge – growth of 0.8 percent, in foreign currency – a decrease of 2.3 percent). Personal credit continued to rise by 2.9 percent amid high inflationary expectations of the population.
Amidst the strengthening exchange rate, foreign currency loans fell to 1.69 billion tenge ($3.5 million), decreasing by 2.5 percent. Out of the total volume, corporate loans dropped by 2.5 percent, while personal loans – by 2.4 percent. Thus, national currency credits totaled 91.8 percent at the end of August 2022 (89.7 percent – in December 2021).
In August 2022, the long-term loans outperformed the short-term ones. Thus, the first increased by 1.8 percent, while the latter – by 0.5 percent.
Small business loans stood at 4.038 billion tenge ($8.46 million), rising by 1.1 percent in the reporting month (growth of 39.5 percent year on year).
In August 2022, the weighted average interest rate on national currency loans issued to non-bank legal entities increased slightly and reached 16.2 percent (in August 2021 – 11.6 percent, in July 2022 – 16.1 percent), whereas personal loans increased to 17.8 percent (in August 2021 – 17.2 percent, in July 2022 – 16.3 percent).