Kazakhstan establishes national credit agency amid foreign dependency concerns
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Kazakhstan announces the creation of a national credit ratings agency to reduce reliance on foreign firms. The initiative aims to provide greater control over corporate ratings. This move comes even as international agencies dominate the market.
National Credit Agency Initiative
Kazakhstan's government has announced plans to establish a national credit ratings agency. This initiative is intended to reduce the country's reliance on foreign credit rating firms such as Moody's and Standard & Poor's. The new agency will aim to provide more localized assessments of corporate creditworthiness, according to the Ministry of Finance.
Market Dominance of Foreign Agencies
Currently, international credit agencies dominate Kazakhstan's corporate ratings sector. Moody's, Fitch, and Standard & Poor's are the primary entities providing credit assessments for Kazakhstani companies. The new national agency seeks to challenge this dominance by offering alternative ratings that reflect local economic conditions.
New Credit-to-Income Ratio Rule
The National Bank of Kazakhstan will introduce a debt-to-income ratio limit for borrowers. Loans will be denied if the ratio exceeds a threshold. The measure aims to reduce household over-indebtedness.
What's Next
The national credit ratings agency is expected to be operational by next year. It remains unclear how this will affect Kazakhstan's integration into global financial markets.
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Kazakhstan establishes national credit agency amid foreign dependency concerns
