New Delhi, 02 June 2019

The Newly elected President of Kazakhstan– Kassym-Jomart Tokayev eliminate debts for approximately 500,000 citizens in an order signed on 26th June. The government ensures to repay unsecured consumer loans in second-tier banks and microfinance organisations for certain segments of the population, including large families, families that have lost their main breadwinners, families with children with disabilities, adults who have been disabled since childhood, recipients of state targeted social assistance, orphans, children left without parental care under the age of twenty-nine and those who lost their parents until the age of majority.

Diplomacy Today’s correspondent reported from Astana during the election days in Kazakhstan last month that Kazakhstan will vote for a stable government, wish for good governance.

President Tokayev set an example for the world by committing that the state will repay debts up to US$7,905 and interest up to US$790 in second-tier banks and microfinance organisations giving financial assistance for the citizens, as of July 1. President also asked the Kazakh National Bank to increase regulations on consumer loans which includes imposing a ban on the accrual of penalties, commissions and other payments related to the issuance and servicing of loans for all unsecured consumer loans of individuals more than 90 days overdue.

The bank should also ban loans to citizens with incomes below the subsistence minimum (29,698 tenges or US$78.25 per month) to avoid further deterioration of their financial situation. It will take additional regulatory measures when issuing unsecured consumer loans, such as considering the overall ratio of the debt burden on a borrower and imposing additional requirements for bank equity, among other steps.

Global Desk, DiplomacyToday.in (courtesy – The Astana Times )

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