Kazakhstan has prohibited issuing loans that exceed a borrower’s income by a significant margin. The Agency for Regulation and Development of the Financial Market (ARDFM) has introduced a new prudential standard called the Debt-to-Income Ratio (DIR). This measure, outlined in the regulator’s resolution, took effect on August 20, 2024.
The DIR is calculated by dividing the total debt from all loans by a borrower’s annual income. Lending institutions will use this ratio alongside the existing Debt Load Factor (DLF), which limits a borrower’s periodic payments to no more than 50% of their monthly income.
The ARDFM has announced that the...