Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market reminds that discontinuation of a microfinance organization, including in case of revocation of its license, does not imply cancellation of the borrowers' obligations. Obligations to repay microloans remain in full.

Borrower's debt remains valid to the former MFO or to a new creditor in case of assignment of rights of claim. In case of transfer of the debt to another creditor, the borrower must be notified of new details and debt repayment procedure.

Citizens should take a responsible approach to processing the microloans. It is important to remember that along with the microloan, borrowers undertake the obligation to repay it with interest. Before approaching an MFO for a microloan, it is also important to make sure that the company operates legally. You can check whether the MFO has a valid license on the Agency's website.

Borrowers have not only obligations but also relevant rights. In case of disputes with MFOs, you can contact microfinance ombudsman for a free consultation and protection of your rights.

In 2024, 29 microfinance organizations (MFOs) ceased their operations in the Republic of Kazakhstan, 17 of which ceased their operations on a voluntary basis and 12 were discontinued by decision of the authorized agency. Key reasons of the discontinuation are recurrent violations of the laws, including requirements of prudential standards.

More useful materials are available on Fingramota.kz website.

Source : https://www.gov.kz/memleket/entities/ardfm/press/news/details/1045762?lang=kk