The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has reminded borrowers that missed loan payments can lead to fines and penalty interest, deterioration in credit history, reporting to credit bureaus, and ultimately court action and compulsory recovery. The notice also sets out the tools available under Kazakhstan’s legislation to resolve debt before court proceedings, with a focus on timely engagement with banks and microfinance organizations. When a payment is missed, the creditor must notify the borrower within 10 calendar days from the start of the arrears, stating the amount due, the possible consequences of non-payment, and the borrower’s right to request changes to the loan terms. Borrowers facing financial difficulties may apply to a bank or microfinance organization for debt restructuring, explaining the reasons for hardship and proposed amendments. The financial institution must consider the request within up to 15 calendar days. Possible outcomes include a payment deferral, extension of the loan term to reduce the monthly burden, a lower interest rate, partial write-off of fines and penalty interest, or sale of pledged property by the borrower. Banks and microfinance organizations are not allowed to charge a fee for reviewing a restructuring request. If restructuring is refused, borrowers may обратиться to the bank ombudsman for bank loans or the microfinance ombudsman for microfinance loans under Kazakhstan’s unified pre-trial settlement procedure for overdue debt. If the borrower takes no action, the creditor may transfer the debt to collectors where arrears are under 90 days, or apply to court, after which recovery may be carried out by a private bailiff. Enforcement measures may include freezes on bank accounts and property, deductions from official income, and temporary restrictions on leaving the country.

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