The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published a reminder that a borrower’s loan is not considered repaid simply because a microfinance organisation (MFO) has lost its licence. Under the Civil Code, unless the contract provides otherwise, borrowers must return the full amount received together with accrued interest, and the repayment obligation continues either to the original organisation or to a new creditor if the claim is assigned. The Agency noted that in 2024, 17 organisations voluntarily surrendered their licences and 12 were closed compulsorily, citing systematic legislative breaches and failure to comply with prudential and other standards. It also advised consumers to check an MFO’s licensing status on the Agency’s website before taking a loan and to assess key microcredit terms, including the interest rate, repayment period and late-payment penalties.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-03-13
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan warns that microcredit obligations remain in force even after a microfinance organisation loses its licence
The Agency for Regulation and Development of the Financial Market of Kazakhstan clarified that a borrower's loan remains outstanding even if a microfinance organisation (MFO) loses its licence, unless otherwise stated in the contract. In 2024, 17 MFOs voluntarily surrendered their licences and 12 were closed for legislative breaches. The Agency advises consumers to verify an MFO's licensing status and review key loan terms before borrowing.