While details remain sparse, the Majilis, the lower house of the Parliament of Kazakhstan, recently passed a new bill regulating microfinance institutions (MFIs) that is intended to protect the rights of the borrowers. According to the National Bank of Kazakhstan, MFIs in the country have become usurious. The National Bank of Kazakhstan will monitor the implementation of the new law, which must be observed by all MFIs. However, some Members of Parliament, in lieu of government regulation, support the creation of a self-regulating organization using the framework of the existing national association of MFIs, which reportedly includes 90 percent of operating MFIs. Reportedly, out of the 1,800 registered MFIs in Kazakhstan, half are in operation.
By Mihaela Grindeanu, Research Associate
Sources and Additional Resources:
Caspionet.kz story: “Regulation of microcredit organization becomes tougher”, http://caspionet.kz/eng/general/Regulation_of_microcredit_organisation_becomes_tougher_1340857351.html
MicroCapital.org story, June 1, 2012: “MICROCAPITAL BRIEF: ResponsAbility Loans $6.4m to Microfinance Institutions KMF of Kazakhstan, FINCA Jordan, FINCA Azerbaijan”, https://www.microcapital.org/microcapital-brief-responsability-loans-6-4m-to-microfinance-institutions-kmf-of-kazakhstan-finca-jordan-finca-azerbaijan/
MicroCapital.org story, March 6, 2012: “MICROCAPITAL BRIEF: JSC Fund for Financial Support of Agriculture to Issue $20m to Kazakh Microfinance Institutions (MFIs) for Rural Microlending”, https://www.microcapital.org/microcapital-brief-jsc-fund-for-financial-support-of-agriculture-to-issue-20m-to-kazakh-microfinance-institutions-mfis-for-rural-microlending/
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