Galim Khussainov
Inflation and the tengeBankingLending and mortgagesTaxationEconomy and public policyManagement

Banking · 1 min read

A Trillion? Make It Two!

Translated from Russian with the help of AI. Original: Russian version

The KZT 1 trillion in overdue loans shown in the National Bank's report does not square with the KZT 2 trillion in state support requested for the banks.

I open the National Bank's report on second-tier banks. Loans overdue by more than 90 days total KZT 1 trillion. Provisions set aside across the entire banking system total KZT 1.6 trillion.

Typically, the Distressed Assets Fund buys up problem assets at a discount. In our system, I would expect that discount to be 50% or more.

That suggests that actual non-performing loans should be around KZT 4 trillion.

So here is my question: why does the National Bank, on the one hand, show only KZT 1 trillion in problem loans in its report, and on the other, ask the state for KZT 2 trillion in assistance?

Published in: Ratel.kz, 14 February 2017

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