Analysis of the problem of creditworthiness of the population in the Republic of Kazakhstan

The Center for Applied Research "TALAP" has been advocating for a systematic solution to the problem of over-crediting of the population of Kazakhstan for many years.

In 2017, TALAP proposed to regulate online loans with interest rates of 700-1000% per annum. Thanks to the support of the National Bank and members of Parliament, a restriction on the annual interest rate on loan agreements with individuals in the amount of 100% was introduced into the Civil Code through additions to the Civil Code of the Republic of Kazakhstan. However, this measure was not sufficiently effective, as online lenders charged additional fees. In the future, online lenders were introduced into the sphere of regulation of the Law of the Republic of Kazakhstan "On Microfinance Activities" with the appropriate application of all regulatory restrictions.

Since 2019, including within the framework of the National Council of Public Trust (NSOD), we have drawn the attention of the Head of State to the critical debt burden and the need for the early adoption of the law on bankruptcy of individuals. On June 26, 2019, the President signed a decree "On measures to reduce the debt burden of citizens of the Republic of Kazakhstan". And on December 30, 2022, the President of the Republic of Kazakhstan signed the Law "On restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan".
In addition, during this time, the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan (ARRFR) has adopted a set of measures to reduce debt.

In the autumn of 2023, Parliamentary hearings were held in the Mazhilis on reducing the debt burden of the population and improving financial literacy. Based on its results, the ARRFR has developed additional measures to limit the debt burden of citizens.
However, the expert community continues to discuss whether there is a problem of debt in Kazakhstan, how critical it is and how it can be effectively solved.

This report presents key indicators of the population's debt burden, summarizes arguments and counterarguments from different sides, and makes an independent assessment of the TALAP Center.