Protecting borrowers

Protecting borrowers

The National Bank is going to introduce measures of extra protection of borrowers. The special working team, which involves representatives of the National Bank, Ministry of Justice and General Prosecution, are developing a number of suggestions in this connection. One of such suggestions includes a refusal to recover collateral in case of minor breach of obligations by a borrower. The National Bank representatives claim that the Civil Code has the relevant article. However it still hasn’t been used properly because of the absence of the term «small debt». Daniyar Akishev, Deputy Chairman of the National Bank of Kazakhstan says that the banks are interested in the provisions of law, in this case those of the Civil Code, to be transparent and simple. And this provision will ease the life of both the borrowers and the banks.   He also added that the project stipulated that the amount of a debt should not exceed 10% of the price of a pledge. Additionally, the bank would like that the delay of payment should not exceed three months. Currently the banks of Kazakhstan are clearing their toxic loan portfolio. For this purpose state owned and private Distressed Assets organisations have been founded. New regulation standard is designed to create the troubled loans ranking.


Kazakh exchange offices have cut dollar sales by 8% and euro sales by 4% compared with 2011. Meanwhile, rouble sales have to the contrary, grown by 28%, reports. The rouble is becoming just as popular as the euro among Kazakhstan’s citizens. In November 2012 exchange offices sold 25 billion tenge worth euros. However, neither rouble, nor euro can compete with the dollar. Dollar sales therefore exceeded 277 billion tenge. The closer the region is to the Russian Federation, the more interest people show in the rouble. The interest is the highest in the border-line regions; for instance, in the North Kazakhstan region sales rate is 2.5 thousand tenge; in the East Kazakhstan and Pavlodar regions it adds up to 1.8 thousand tenge. Very scarce interest in the rouble is in the south; in the Almaty region sales volumes amounted to 86 tenge per person.


In 2013 Kazakh labour market will keep up stability with increasing trends of demand for highly qualified personnel. According to Forsage Kazakhstan Recruiting Agency retail companies will renew their management teams. Companies in which creative approach plays the key role in business organisation will also crave for better streamlining initiatives. As expected by specialists commercial organisations will raise average salaries by around 15%. Workforce from the neighbouring countries might receive jobs. However, fewer numbers of expatriate workers will be involved. And the skill pool policy will be directed at “educating” future specialists starting from the universities. Research Centre agrees with the bigger picture of expectations after analysing the labour market in 2012. Compared to December 2011, employment demand on the Kazakh market more than doubled in December 2012. And compared to January 2012 it increased by 31%. The highest growth was observed in October and April.  According to the Research Service, the demand for specialists in the field of telecommunication, IT and the Internet will continue growing in 2013. The market’s main features will be high demand for professional sales specialists. The main trend of 2012 was dynamic growth of offers on the labour market which increased by 57% compared to 2011. Marina Sakiyeva, the Marketing and PR Director at, says that Almaty and Astana have the largest number of applicants because business and large enterprises are focused in these two cities. The company also looked at the regions and says that the highest activity was observed in the Aktobe, Atyrau and Mangistau regions, with about 25 to 30 applications per one vacancy.  According to experts the biggest demand was for sales and added up to 2%, IT, Internet and Telecommunication accounted for 10% of the total amount of vacancies. The top most demanded professions also included accountants, administrators and marketing managers.


When making a choice between buying a car or jewellery women will go for the latter, while men will prefer to purchase a vehicle. These are the findings of Kazakh jewellers who had surveyed several focus-groups. Psychologists say that cars for men are signs of status, whereas women treat decorative pieces as investments in the future because they can be sold, given as presents or passed on as heirloom. However, in an ordinary Kazakh family a man is usually the sole provider and is invested with powers to make decisions over large purchases.  Ilyas Suleimenov, Jeweller and Doctor of Philosophy says that the statistics shows that a man spends about 50 thousand US dollars on a car; he spends about 5-10% of this money on women’s purchases. Generally, jewelry is closely connected with the history of Kazakh people and reflects the development of national culture. In such a manner a groom must give the bride’s family at least 5-10 items of jewellery at matchmaking or wedding. Market participants say that Kazakh national traditions allowed local jewellers overcome the crisis.