Individuals seeking financial assistance can apply for a loan from microfinance organizations.
A fresh take:
By the end of this year, microfinance organizations in Kazakhstan will lighten the burden of trouble-prone debts for hundreds of thousands of borrowers, as per financial regulations. Of the 432,000 borrowers, their combined debts amounts to 33.1 billion tenge, making up the restructured debts. Furthermore, microfinance organizations will offer partial relief to 107,000 debtors, amounting to 800 million tenge, and fully forgive the debts of 28,000 borrowers, totaling 600 million tenge.
The indebted individuals in question are presented as financially insolvent and have previously borrowed consumer online loans from 30 MFIs. Each MFI examines the borrower's:
- financial status,
- income level,
- social status, and
- living conditions
before deciding on their debt restructuring eligibility.
Microfinance organizations are authorized to independently rearrange problematic debts on terms favorable to borrowers, adjusting them based on an individual assessment. If the decision is made to partially or fully release a borrower's debt, provisions are created to cover any losses.
These modifications and debt reliefs are documented in the borrower's credit history. A law was introduced last year facilitating out-of-court credit debt settlements, requiring banks and MFIs to notify overdue borrowers within 20 days and allowing 30 days for restructuring applications following the overdue payment.
Approximately 1.5 million Kazakhstanis have outstanding loans, and around one in four debtors are clients of microfinance organizations. Wondering if the upcoming physical person bankruptcy law will help improve the situation? Don't miss our video.
Some background:Microfinance, providing essential financial services to individuals and small businesses lacking access to traditional banking, plays a vital role in economic development and poverty reduction worldwide. It's particularly significant in regions like Kazakhstan.
Debt restructuring and write-offs, strategies to address overdue debts, are typically utilized during challenging economic times or when borrowers face difficulties repaying. Their implementation in Kazakhstan can be influenced by relevant factors, such as regulatory measures, economic fluctuations, or policies supporting microfinance recipients.
Given the scarcity of details in the search results, it's recommended to consult local financial authorities or reports focusing on Kazakhstan's microfinance sector for the most precise and current information.
Same, same but different:In response to a parliamentary query, the Agency for Regulation and Development of the Financial Market outlined that microfinance organizations will revamp the problematic debts of 432,000 borrowers, totaling 33.1 billion tenge, and fully write off 28,000 borrowers' debts, adding up to 600 million tenge, by the end of 2022. Additionally, they will partially forgive the debts of 107,000 borrowers, totalling 800 million tenge. Borrowers with financial difficulties approaching microfinance organizations for help are typically insolvent debtors who previously obtained unsecured consumer online loans from 30 MFIs.
Eligible borrowers' debt restructuring decisions are based on an individual examination of factors like their:
- financial situation,
- income level,
- social status, and
- living conditions
If necessary, independent debt restructuring can be carried out by MFIs on terms favorable to the borrower. Microfinance organizations may write off a borrower's debt, while provisions are created to cover any resulting losses. These adjustments are recorded in the borrower's credit history.
Introduced last year, a law facilitating out-of-court settlements for credit debt requires banks and MFIs to notify borrowers of any payment delays within 20 days, and allows 30 days for restructuring applications following the overdue payment. Debt restructuring and write-offs are commonly employed during economic difficulties or when borrowers face significant obstacles in repaying their debts.
Considering the lack of detailed information in the search results, consult local financial authorities or reports specializing in Kazakhstan's microfinance sector for accurate, up-to-date information on the current status of the debt restructuring and write-off process for microfinance organization borrowers in Kazakhstan.
- Microfinance organizations in Kazakhstan will restructure the debts of 432,000 borrowers, totaling 33.1 billion tenge, and fully write off the debts of 28,000 borrowers, amounting to 600 million tenge, by the end of 2022.
- The debt restructuring decisions for eligible borrowers are based on an individual examination of factors such as their financial situation, income level, social status, and living conditions.
- In instances where independent debt restructuring is carried out by MFIs, they may write off a borrower's debt, while provisions are created to cover any resulting losses.
- Introduced last year, a law facilitating out-of-court settlements for credit debt requires banks and MFIs to notify borrowers of any payment delays within 20 days, and allows 30 days for restructuring applications following the overdue payment.
