Tuesday, 13 August 2019, 12:19:38
At the Government session chaired by Prime Minister Askar Mamin, Chairman of the National Bank Erbolat Dossaev reported that in July 2019 monthly inflation was 0.2%. Annual inflation remained at 5.4%. The current level of the base rate (at the level of 9.00% with the corridor +/- 1 pp) and monetary conditions ensure the preservation of inflation in 2019 within the target corridor of 4-6%.
“Despite the seasonal decline in prices for fruits and vegetables, deflationary processes characteristic of the summer period are not observed,” Dossaev informed.
Banks continue to increase lending activity. For April-June 2019, after bank recovery process held in the 1st quarter 2019, the loan portfolio increased by 3.5%, or 433.6 billion tenge and amounted to 12.9 trillion tenge. Long-term loans amounted to 11 trillion tenge, short-term — 1.9 trillion tenge.
Deposits in national currency increased by 5.5% since the beginning of 2019. Deposits in foreign currency decreased by 19.8%. As a result, deposit dollarization fell to 41.6% at the end of June.
In the framework of the Program “7-20-25,” on Aug. 8, 2019, 16,677 applications for 188.3 billion tenge were accepted, of which 9,813 applications for 112.7 billion tenge were approved by banks.
In the framework of the implementation of the Presidential Decree “On Measures to Reduce the Debt Burden of Citizens of the Republic of Kazakhstan,” the Government and the National Bank, together with banks and microfinance organizations, are working in two directions.
The first is debt repayment of up to 300 thousand tenge for unsecured consumer loans for socially vulnerable segments of the population.
Work was carried out to collect information on debt according to the lists of citizens, a list was prepared for payment. The debt repayment will be completed by the end of August 2019. This will allow, according to preliminary data, 508 thousand citizens of the country to receive state support of 105.5 billion tenge. Citizens do not need to contact banks and microfinance organizations, the work on paying off the debt will be done by the lenders themselves, after which the lenders will send appropriate notifications to each borrower.
The second is to write off to all Kazakhstanis the fines and penalties calculated for July 1, 2019, for interest on unsecured consumer loans. By July 30, 2019, banks and microfinance organizations wrote off fines and penalties for unsecured consumer loans to 1.2 million citizens for a total of 33.6 billion tenge. Until Aug. 20, 2019, the National Bank will reimburse 30% of expenses incurred by these organizations.