Kazakhstan to channel KZT 500 bln to cope with bad loans by 2016
ASTANA. KAZINFORM "KZT 500 bln will be allocated in 2014-2015 for coping with bad loans of the second-tier banks," head of the National Bank of Kazakhstan Kairat Kelimbetov told representing the bill "On amendments to the National Budget for 2014-2016" at the Senate.
"One of the consequences of the crisis is that banks reduced crediting the country's economy. Before the crisis the credit portfolio growth made 30%-50% and more, sometimes it reached 80% while now it grows no more than 10%. It is the direct consequence that the level of bad loans is high," Kelimbetov added. "It is planned to channel KZT 250 bln in 2014 and KZT 250 bln more next year to reduce the share of bad loans to less than 10% that will greatly influence the country's investment climate," he resumed.