The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an update on its Mortgage Loan Refinancing Programme, highlighting results since 2015 and stating that social media claims about misappropriation of programme funds are unfounded. Under the programme, the state provided support totalling KZT 318.2bn to 48.4 thousand borrowers through refinancing of problem mortgage loans at a preferential rate of no more than 3% per year. Foreign-currency loans were converted using the National Bank’s 18 August 2015 exchange rate of KZT 188.35 per USD, and banks wrote off KZT 248.3bn in accrued interest and penalties (including late-payment charges and fines). Additional measures were implemented to strengthen protection for socially vulnerable groups, including debt-burden reduction and returning sole homes held on banks’ balance sheets back into ownership, with 10.6 thousand borrowers receiving state support. The Agency also referenced legislative amendments developed and adopted to protect mortgage borrowers’ rights, reporting that the share of problem mortgage loans fell to 0.7%. To control targeted use of state funds, banks are required to submit monthly reports, and regional commissions operate nationwide to review mortgage borrower complaints, including representatives of borrower associations, the Association of Financiers of Kazakhstan, the Agency and local executive bodies. The Agency indicated it will consider legal action if false information continues to be disseminated.

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