At a recent meeting in Astana, Kazakhstan, the Minister of Labor and Social Protection of Population, Serik Abdenov, reportedly stated that his government aims to grow the cumulative microloan portfolio in the country to KZT 12 billion (USD 79.7 million) or more enabling the amount of microcredit loans to increase by three and a half times within the next year. While details remain scarce, it appears that Minister Abdenov was referring specifically to government-backed microloans. The ministry also will aim to simplify credit procedures and tighten credit requirements for borrowers. These improvements are aimed at assisting self-employed people in the country to obtain loans to generate income that would result in additional tax payments and participation in the pension and social insurance systems. It is estimated that 2.4 million people of the 2.7 million that are in this category are enrolled in the pension system.
The 46 microfinance institutions in Kazakhstan that report 2011 data to the US-based nonprofit Microfinance Information Exchange (MIX), hold an aggregate loan portfolio USD 263 million, serve 100,860 active borrowers and have collected deposits of USD 347,300.
By Jennifer Young, Research Associate
About Ministry of Labor and Social Protection of Population of the Republic of Kazakhstan
The Ministry of Labor and Social Protection of Population of the Republic of Kazakhstan is a government agency aimed at regulating the labor market, social security, pensions, workplace conditions and employee rights. Serik Abdenov has served as the Minister of Labor and Social Protection of Population of the Republic of Kazakhstan since September 2012.
Sources and Additional Resources
Caspio Net Story: “Microcredit to Increase Three Fold in Kazakhstan”
MicroCapital Story: “MICROCAPITAL BRIEF: Parliament Votes for Tougher Regulation of Microcredit Organizations in Kazakhstan,” July 17, 2012.
MicroCapital Universe Profile: Ministry of Labor and Social Protection of Population of the Republic of Kazakhstan
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