Kazakhstan to allow non-repayment of state bailout funds
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The Kazakh government plans to allow banks to keep state bailout funds without repayment, according to Exclusive.kz. The measure aims to stabilize the financial sector amid rising non-performing loans. A formal decree is expected within weeks.
The Bailout Proposal
Exclusive.kz reports that the government is drafting legislation to waive repayment of state funds provided to banks under previous bailout programs. The total amount involved exceeds 1.2 trillion tenge ($2.6 billion), according to sources close to the National Bank. The policy would apply to loans extended since 2020.
Market and Regulatory Context
Kazakhstan's banking sector has faced pressure from a 15% rise in non-performing loans over the past year, data from the Agency for Regulation and Development of the Financial Market shows. The National Bank has injected capital into several lenders, including Halyk Bank and Kaspi.kz, to maintain liquidity. Critics argue the move could encourage reckless lending.
What's Next
The government is set to submit the draft law to parliament by July 2026. It remains unclear whether international financial institutions, such as the IMF, will support the policy or view it as a moral hazard.
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Kazakhstan to allow non-repayment of state bailout funds
