National Bank Chairman Timur Suleimenov commented on the reintroduction of the debt burden ratio for auto loans. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
The debt burden ratio is an indicator that takes into account the burden of previously taken loans when applying for a new loan. Three years ago, this requirement was abolished when applying for a new car on an auto loan. Now it is planned to be reintroduced from 2027.
There are reasons for this decision. "We said that consumer lending grew by 30 percent. And auto lending has grown by 60 percent over the past three to four years. The quality of these loans is also deteriorating. 5-7 percent have moved into third-level problem loans. We know that some banks have begun to write off loans from their balance sheets," Suleimenov said at a briefing in Astana.
In this regard, the head of the National Bank gave an example of an auto loan. "For example, you took an auto loan for 10 million tenge. After a year of payments, you lost your job and cannot pay. In such a case, the car may be repossessed at a residual value of 5-7 million tenge. But you still have a loan of 3-5 million tenge on your shoulders. It also needs to be paid," Suleimenov noted.
According to him, measures such as the debt burden ratio are used to prevent such situations.