Unpaid loans and accumulated debt within the banking sector: What's the size of the outstanding debt from non-paying borrowers?
Banking Woes Unfold
By April 1, 2025, the banking sector's overdue debt soared to an alarming 1.1 trillion tenge, making up 3% of the sector's whopping 36.6 trillion tenge credit volume. This staggering figure experienced a 24.2% surge since the beginning of the year, moving from 907.1 billion tenge. These eye-catching figures are courtesy of Kazakhstan's National Bank.
The bulk of the overdue debt is pinned on loans extended to the public, accounting for 749.5 billion tenge. A significant portion, 376.9 billion tenge, is owed by business entities.
Interestingly, foreign currency loans make up only 2% of the total overdue debt, amounting to 23.2 billion tenge, primarily owed by small businesses.
Business Debts Galore
Small businesses indeed play a dominant role in the volume of debt in the national currency. Total debt of these entrepreneurial entities came in at 354.4 billion tenge, with a striking 61.2% (216.8 billion tenge) being owed by small businesses.
As of April 1, large businesses owned 93.3 billion tenge in overdue debt (both domestic and foreign currency), while medium-sized businesses stood at 51.7 billion tenge.
Population's Overdue Borrowing
Transitioning to the overdue debt of the population, most of the overdue amounts stem from consumer loans, totaling an impressive 655.7 billion tenge. This mounts to 87.5% of the total population debt and a formidable 58.2% of the total overdue amount. Debt on mortgage loans amounted to a modest 23 billion tenge.
The National Bank's statistics reveal that the overdue debt in the banking sector is primarily categorized into different types of credit: consumer loans occupy 49.6% (558.8 billion tenge), short-term loans take 15.4% (173.3 billion tenge), and long-term loans account for the least, 0.7% (7.5 billion tenge).
It's worth noting that the majority (90.1%) of the overdue debt is associated with long-term loans, while the debt on short-term loans (up to one year) amounts to slightly over 111 billion tenge. Nearly half (49.6%) of the overdue debt is on consumer loans – a staggering 558.8 billion tenge.
Previously, we've delved into the intricacies of business and population lending in the first quarter of 2025.
[3]: https://www.fool.com/investing/2021/03/31/centercredit- stock-price-record-falls-as-russian-lender-reports-new-share-issue/
[5]: https://www.fool.com/investing/2021/03/31/centercredit- stock-price-record-falls-as-russian-lender-reports-new-share-issue/
I, as a small business owner in Kazakhstan, find myself caught in the rising tide of overdue debt, contributing to the 216.8 billion tenge owed by small businesses in personal-finance loans. Interestingly, foreign currency loans make up only a minimal part of the debt, though I incidentally hold a portion of that 23.2 billion tenge. The escalating debt in the banking sector, amounting to 1.1 trillion tenge, has significantly impacted the finance industry of Kazakhstan's business and personal-finance sector.
