How many Kazakhstanis voluntarily refused to receive loans, reported the ARRDF

385 thousand Kazakhstanis exercised the right to refuse to enter into loan agreements, Liter.kz reports.

According to Olzhas Kizatov, Deputy Chairman of the ARRDF of the Republic of Kazakhstan, the service became available in February of this year.

“As part of the law to minimize risks in lending, we have additionally provided for the responsibility of financial organizations, banks and microfinance organizations for issuing loans to persons who voluntarily refused to receive them. In this case, banks and microfinance organizations are obliged to write off these loans and exclude the negative credit history of these individuals from the credit bureau system. Regarding information that microfinance organizations bypass this norm, we do not have such information,” says Olzhas Kizatov.

In the first quarter of this year, the total volume of microloans issued amounted to 525 billion tenge, which is about 4.5 million contracts. Compared to the fourth quarter of last year, there was a decrease of 2.5%. There was also a slight decrease in volume and quantity.

“We believe that this is seasonal in nature and is not related to the voluntary refusal rule. These measures are aimed primarily at reducing the number of fraudulent transactions. Recently there have been a significant number of complaints about fraudulent issuance of loans to third parties. The rule on voluntary refusal is largely aimed at reducing the number of such fraudulent transactions,” Kizatov noted.