The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published a reminder of the legally established unified framework for borrower interactions with banks, microfinance organisations (MFOs) and collection agencies, covering how individuals can seek changes to repayment terms, escalate disputes, and use personal bankruptcy procedures where repayment is no longer feasible. Borrowers facing financial difficulty can submit a written request to their creditor (a bank, MFO or collection agency) to change the terms for meeting their obligations, supported by documents evidencing deterioration in financial circumstances or reasons for arrears. Requests may be submitted in person at the creditor’s address and, if предусмотрено by the contract, via mobile application or email, with the creditor required to consider the request and decide within 15 calendar days. If the outcome is unsatisfactory, borrowers can apply to the bank ombudsman (for bank loans) or the microfinance ombudsman (for MFO loans), attaching specified documentation including the contract and payment schedule, proof of the prior approach to the creditor and its response, and evidence of financial hardship; ombudsman services are free and decisions are binding, and an application is only possible after a formal request to the creditor and receipt of a response. The note also summarises the out-of-court personal bankruptcy route under Kazakhstan’s law on restoring citizens’ solvency and bankruptcy, which allows debt write-off where conditions are met, including debt not exceeding 1,600 times the monthly calculation index (AEK), no realisable property (including a share in jointly owned property), no payments for 12 consecutive months, no bankruptcy procedure in the past seven years, and where debt restructuring has been conducted. Where the individual has property or liabilities exceeding 1,600 AEK, an application to court for solvency restoration or judicial bankruptcy is available; the process is free and can be filed via eGov.kz or through public service centres, with stated consequences including a five-year restriction on taking new credit or microcredit after completion, three years of financial monitoring, and a seven-year interval before repeat bankruptcy is possible.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-09-29
Kazakhstan’s Agency for Regulation and Development of the Financial Market reiterates borrower pathways for loan term changes, ombudsman review and personal bankruptcy
The Agency for Regulation and Development of the Financial Market of Kazakhstan reiterated the framework for borrower interactions with banks, microfinance organizations, and collection agencies, detailing procedures for altering repayment terms and escalating disputes. Borrowers can request term changes by submitting evidence of financial hardship, with decisions required within 15 days. The note also outlines personal bankruptcy options, including debt write-off under specific conditions and judicial bankruptcy for larger liabilities, with associated restrictions on future credit.