Central bank will be risk mitigator in microfinance provision
Economy
The risk level is planned to be reduced from 100% to 75% when providing microfinance services to self-employed persons and small businesses.
According to the Central Bank, the level of risk and capital pressure will decrease, while the bank's creditworthiness will increase by 33%.
As of 1 February 2024, for individuals and small businesses that have a regular income and have been in a bank account for at least 6 months, provide microfinance services, including funds allocated to microfinance organisations for purposes set by the microfinance organisations themselves, the commitment level will be reduced from 100% to 75%.
Small businesses include individual entrepreneurs, microfirms whose total income for a calendar year does not exceed 1 billion sums, as well as small enterprises with a total income of 1-10 billion sums for a calendar year.
As of 1 February 2024, for individuals and small businesses that have a regular income and have been in a bank account for at least 6 months, provide microfinance services, including funds allocated to microfinance organisations for purposes set by the microfinance organisations themselves, the commitment level will be reduced from 100% to 75%.
Small businesses include individual entrepreneurs, microfirms whose total income for a calendar year does not exceed 1 billion sums, as well as small enterprises with a total income of 1-10 billion sums for a calendar year.
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