Kazakhstan faces inflation impact as credit approvals fall 13.7%
Kazakhstan's inflation is eroding purchasing power, warns financier Turar Abdi. Credit approvals have decreased by 13.7%, reflecting tighter monetary policies. This occurs even as banks become more selective in lending.
Inflation and Purchasing Power
Financier Turar Abdi warns that inflation in Kazakhstan is acting as a 'hidden tax,' diminishing the real purchasing power of citizens even as their bank deposits grow. This phenomenon is causing concern among depositors who find their savings losing value over time. The National Bank of Kazakhstan has been monitoring inflation trends closely, but the impact on consumers remains significant.
Credit Market Contraction
The Association of Financiers of Kazakhstan reports a 13.7% decline in credit applications, with the most significant drop in unsecured consumer loans, which fell by 16.9%. This segment, accounting for 91% of all applications, has traditionally provided easy access to funds. Banks have reduced approval rates from 29.2% to 26.2%, with mortgage approvals dropping from 37.2% to 24.5%, as financial conditions tighten and regulatory scrutiny increases.
What's Next
The National Bank of Kazakhstan is expected to review its monetary policy stance soon. It remains unclear how these economic pressures will affect future lending and consumer confidence.
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Kazakhstan faces inflation impact as credit approvals fall 13.7%
