The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan, together with the National Bank, met with the heads of second-tier banks to review measures to reduce excessive household indebtedness and to expand lending to the real economy. The discussions also involved the management of Baiterek National Managing Holding and resulted in a decision to strengthen the status and powers of a Project Office intended to mobilise bank funding for real-sector lending. On household debt, the meeting reviewed progress against banks’ individual plans to reduce problematic consumer loans and confirmed continued work on effective restructuring procedures. Planned supervisory and policy steps include tightening requirements for assessing borrowers’ solvency and introducing limits on further increases in the debt burden of citizens with overdue debt, with measures primarily aimed at supporting people in difficult life situations and socially vulnerable groups; additional regulatory and legislative measures to curb the build-up of problematic household debt are also being considered. On business lending, the participants discussed approaches to establishing an SME loan guarantee fund on the basis of the Damu Fund and will continue to work with banks on participation terms and on improving the accessibility of guarantees for businesses. The strengthened Project Office is intended to support interagency coordination and the financing of large investment and infrastructure projects through syndicated lending based on equal participation by banks and Baiterek group companies.

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