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Current State of the Microfinance Sector in Kazakhstan: 149 organizations are operating

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According to the register of microfinance organizations (MFIs) of the National Bank of the Republic of Kazakhstan (NB RK) on January 1, 2018 149 organizations are operating in the country. The number of MFIs for 2017 increased by 13 organizations.

MFIs are represented in all regions of Kazakhstan. The largest number of MFIs has been registered in:

  • Almaty city – 53 MFIs (35%),
  • South Kazakhstan region – 23 MFIs in (15%),
  • Astana – 17 MFIs (11%).

The smallest number of MFIs are registered in Aktobe, Mangystau, Zhambyl and Akmola regions – 2 organizations in each region.

Loan Portfolio

According to the NB RK, the loan portfolio of microfinance organizations as of January 1, 2018, excluding the reserves, amounted to 159 937 million tenge ($485 000 000), having increased by 58% in 2017.  The loan portfolio of MFIs, members of AMFOK  amounted to 89% of the loan portfolio of all MFIs.

76% of the loan portfolio of MFIs is formed by borrowed funds, both of domestic and foreign investors.

The largest share of the loan portfolio accounted on MFIs registered in:

  • Almaty city – 78%,
  • South Kazakhstan region – 12%,
  • Astana – 3%.

The accumulated provisions (reserves) formed on the loan portfolio amounted to KZT 5 271 million ($15 972 000) or 3% of the total loan portfolio of microfinance organizations. 2% of the loan portfolio of MFIs are considered to be hopeless (bad).

Volume of issued microcredits

According to the Committee of Statistics of the Ministry of National Economy of the Republic of Kazakhstan (CS MNE RK), in 2017, 614 342 microcredits were issued for a total amount of KZT 228 252 million ($692 000), which is 61% more than in 2016.

The risk portfolio of the microcredit sector for a period of more than 30 days is 4% of the loan portfolio.

According to the data of the CS MES RK, 99% of microcredits were issued to individuals, of which 47% of microcredits were officially issued for entrepreneurial purposes.

 

Update is prepared by the Association
of Microfinance Organizations
of Kazakhstan (AMFOK).