Kazakhstan extends debt-load exemptions for certain car and mortgage loans

Kazakhstan's National Bank has extended exemptions from debt-load ratio (KDN) requirements for certain mortgage and car loans, its press service said. Banks may currently skip the KDN requirement for loans under the housing construction savings (ZhSS) system and for some car loans.

Exempt car loans include those for new, never-used vehicles first registered in Kazakhstan and pledged as collateral; used cars pledged as collateral with a down payment of at least 50% of their value; and vehicles up to three years old with a down payment of at least 30%. The ZhSS exemption runs until 31 December 2029, and the car loan exemption until 31 December 2027.

The regulator will monitor the credit market through 2027 and reserves the right to add measures if systemic risks grow. In July, Industry and Construction Minister Yersain Nagaspayev proposed scrapping KDN for car loans, but National Bank Governor Timur Suleimenov did not support the idea. In early November, a regulator agency began checking KDN calculations at 11 large banks.