The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan outlined amendments adopted on Sept. 28 that expand its Mortgage Housing Loan Refinancing Program for socially vulnerable borrowers. The period for providing additional assistance has been extended to Sept. 1, 2027, while regional commissions may now recommend refinancing for a broader group of vulnerable borrowers. Banks estimate that 1,500 borrowers need this support. To qualify under the expanded criteria, a borrower must have a sole residence, be more than 180 days overdue, have no more than KZT 50 million in outstanding principal and lack sufficient income to repay the loan on its existing terms. The changes can extend preferential refinancing to groups including people with disabilities, pensioners and families raising children with disabilities. Borrowers must apply to their servicing bank with documents confirming their financial and social circumstances. Since the program began in 2015, it has provided KZT 678.2 billion in support to 60,000 borrowers, including KZT 248.3 billion in write-offs of interest, fees and penalties. Of these borrowers, 10,600 socially vulnerable people received KZT 101.2 billion in additional assistance, and 395 homes held on bank balance sheets were returned to former owners. The expanded support requires no new state funding because repayments from previously refinanced loans are recycled into assistance for additional borrowers.

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