Kazakhstani banks reduce external debt by $2.4 billion09 april 2014, 17:32
Kazakhstan banks have reduced their external debt by 2.4 billion in one year, Tengrinews reports citing Deputy Minister of Finance of Kazakhstan Ruslan Dalenov.
“The external debt of Kazakhstani banks has been reduced by $2.4 billion in one year. As of January 1, 2014 the external debt amounted to $11.2 billion,” Dalenov tweeted through his official Twitter account.
According to the National Bank of Kazakhstan, the external debt of the banking sector was reduced by 17% in 12 month of 2013.
Earlier, experts noted that because of the new regulation concerning consumer loans many second-tier banks would be losing a part of their profit. “Kazakhstani banks will experience a decrease in consumer loans because of the new Central Bank regulation,” the experts said.
The new regulation that came in effect on April 1, obliges all the banks of the country to turn down applications for loans from clients whose monthly payments on loans exceed 50% of their monthly incomes. This regulation would certainly change the loan market in Kazakhstan.
“If previously Kazakhstani banks closed their eyes on applicant’s official income, now loans will be issued only to those how have a sufficient official income. For banks this new regulation might end up a blow at their incomes, because loans are a major source of profit for the banks,” a Kazakhstani expert commented.