ASTANA, Kazakhstan, August 4. Bank loans issued to the second-tier banking sector have seen an increase of 1.2 percent in Kazakhstan, reaching a total of 24.4 trillion tenge ($54.9 billion) as of June 2023 which is 7 percent more compared to the same period previous year, Trend reports.
According to Kazakhstan's Agency for Regulation and Development of the Financial Market, there was a 1.2 percent rise in loans denominated in the national currency, amounting to 22.7 trillion tenge ($51 billion), while foreign currency loans also saw a modest increase of 0.5 percent, totaling 1.7 trillion tenge ($3.8 billion).
Furthermore, loans to legal entities experienced a slight decrease of 0.7 percent in June 2023, reaching 8.8 trillion tenge ($19.8 billion), largely due to certain banks writing off problematic debt to off-balance sheet accounts. However, total credits to business entities, including individual entrepreneurs, recorded a minor increase of 0.1 percent, reaching 10 trillion tenge ($22.5 billion).
The loans to micro, small, and medium-sized businesses (MSBs) rose by 0.1 percent to 6.4 trillion tenge ($14.4 billion), displaying growth of 6.9 percent since the beginning of the year. Meanwhile, loans extended to large businesses also saw a slight increase of 0.1 percent to 3.6 trillion tenge ($8.1 billion).
Moreover, loans extended to individuals reached 15.6 trillion tenge ($35.1 billion), reflecting a 2.3 percent growth rate in June 2023. The surge in loans to individuals was mainly driven by a 2.2 percent rise in consumer loans, amounting to 8.5 trillion tenge ($19.1 billion), and a 1.6 percent increase in mortgage loans, totaling 5 trillion tenge ($11.2 billion).