The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published guidance for borrowers on using the bank ombudsman to resolve disputes with banks over loan terms when the parties cannot reach agreement directly. The agency notes that the ombudsman acts as a free mediator and that decisions of the bank ombudsman are binding on financial organisations, while borrowers who disagree with the outcome may appeal to the agency. The guidance describes the ombudsman’s remit as covering disputes related to amending loan contract terms, restructuring debt, and performance of obligations under a bank loan agreement. It also sets out cases where applications are not accepted, including where the matter is already before a court or has been decided, where there is no evidence the borrower first approached the bank, repeated complaints without new circumstances, applications from legal entities or unauthorised third parties, disputes relating to microfinance loans (which are directed to the microfinance ombudsman), and issues linked to fraud. Borrowers are told to submit key documents including the loan agreement and payment schedule, any amendments, the borrower’s request to the bank and the bank’s response (or proof of non-response), and evidence of a deterioration in financial circumstances; after receiving documents, the ombudsman analyses the case and may propose restructuring terms aligned with the borrower’s financial position.

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