The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has reminded borrowers that a unified mechanism is in place for dealing with banks, microfinance organizations and collection agencies when repayment difficulties arise. Borrowers may ask their creditor to change the terms of their obligations if their financial situation worsens, provided they submit documents supporting the deterioration or the reasons for delay. Applications may be filed in person at the creditor’s address and, if the contract allows, through a mobile application or by email. Supporting evidence may include proof of unemployment, termination of employment, unpaid leave, illness or death of close relatives or a spouse, disability, court acts, or documents showing material damage caused by an accident or unlawful acts of third parties. The creditor has up to 15 calendar days to review the request and make a decision. If the response is unsatisfactory, the borrower may then apply to the bank ombudsman for bank loans through bank-ombudsman.kz or to the microfinance ombudsman for microfinance debts through mfombudsman.kz, with the required contract, repayment schedule, proof of the prior approach to the creditor and its response, and documents confirming financial difficulties. Ombudsman services are free, and their decisions are binding on banks and microfinance organizations. The agency also noted that if a borrower cannot repay debts, Kazakhstan’s law on restoring solvency and bankruptcy of citizens provides an out-of-court personal bankruptcy procedure. It cautioned that bankruptcy has consequences, including a five-year ban on obtaining new loans and microloans after the procedure ends, monitoring of the bankrupt’s financial condition for three years, and the possibility of repeat bankruptcy only after seven years.

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