Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan tightens unsecured consumer loan origination and cuts the debt burden coefficient to 0.25 for recently 90-day delinquent borrowers

The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has amended the risk management and internal control framework applicable to second-tier banks and branches of non-resident banks, tightening constraints on consumer lending. The package lowers the debt burden coefficient used for certain high-risk borrowers and adds new limits on when unsecured consumer loans may be granted. For borrowers who had a loan more than 90 days past due in the last 12 months, the debt burden coefficient is reduced from 0.5 to 0.25 to curb additional borrowing and reduce the risk of re-default. Separately, banks will be restricted from issuing unsecured consumer loans when at least one of the following applies: payments are overdue by more than 30 calendar days on bank loans and/or more than one day on microcredits; from 1 July 2025, the borrower had principal and/or interest fully forgiven within the last 36 months; or a restructuring was carried out in the last 12 months that did not contribute to proper performance of the borrower’s obligations. The amendments will enter into force on 24 November 2025.