Kazakhstan's central bank extends car loan relief by one year, housing savings by two

Kazakhstan's National Bank has decided to postpone for another year the application of the maximum debt burden ratio (KDN) to certain car loans. The relief for mortgages in the housing savings system has been extended by two years, until the end of 2029. Governor Timur Suleimenov announced the decision.

Suleimenov said car lending growth has slowed. Car loans had previously grown by up to 73% a year, with issuance rising by 100%, but over the past 12 months the segment grew by about 13-14%. He said tightening is not planned from January 1.

The maximum KDN in Kazakhstan is 0.5. On November 2, the Agency for Regulation and Development of the Financial Market (ARRFR) began regular checks of KDN calculations at 11 large banks. A pilot check showed that banks calculate borrowers' debt burden differently.