Non-perfoming loans to go down to 10% by 2016 in Kazakhstan: Kelimbetov18 april 2014, 19:02
The Governor of the Central Bank Kairat Kelimbetov aims to decrease non-performing loans to 10% by January 1 2016, Tengrinews reports.
Kelimbetov emphasized that overcoming the crisis of 2008-2010 is at the core of the financial sector's development concept to be implemented till 2030.
“The mortgage 'bubble' of those years resulted in a portfolio of non-performing loans. At the moment, non-preforming loans make over 33% of the loan portfolio, which is a lot. We have taken practical measures and introduced amendments to the Tax Code. We are finishing amendments that would exempting banks from taxes if they write off non-performing loans. A toxic assets fund was created and $1.3 billion has been transferred to the fund,” Kelimbetov said.
The Governor set a task to decrease non-performing loans to 10% by January 1st 2016. “Starting from January 1, 2016 it will be a prudential standard. In case of failure to comply, banks will have their license revoked,” Kelimbetov explained.
On April 16, Governor Kelimbetov presented a report on development of the financial sector to President Nazarbayev and the President said that Kazakhstan's financial sector was generally stable.
“Loans have grown 13% since last year. Household deposits stand at $55.2 billion. The assets of the National Oil Fund [accumulating windfall oil revenues] have exceeded $70 billion, growing by almost 22% in the current year. Pension funds have merged into the state-run Single Pension Fund. To ensure further growth of the banking sector, the National Bank is developing a concept to develop industry in Kazakhstan through to 2030. The concept is to be complete by June”, President said.
Reported by Asemgul Khassenova