Kazakhstan to Restrict Loans for Conscripts

The Ministry of Defense will begin sharing data on Kazakhstani citizens undergoing military service with banks and microfinance organizations, Orda.kz reports.

According to a newly published draft resolution from the Agency for Regulation and Development of the Financial Market, credit institutions will be required to verify a borrower's conscription status before approving any new loans. If the applicant is found to be currently serving in the military, the loan will be denied.

The measure is designed to regulate credit obligations for conscripts and prevent the issuance of loans during their term of service.

Under the proposed system, the Ministry of Defense will transmit the following data to credit bureaus: individual identification number (IIN), full name, date of birth, conscript status, and the date of the conscription order.

Credit bureaus, upon receiving this information, will be responsible for checking whether conscripts have existing loans or microloans. They will then relay this information to financial institutions.

If the individual is currently serving, banks and MFIs will be required to offer a payment deferral.

If a financial institution does not have automatic data exchange with the bureau, it must request updates at least once a week. Once the individual is discharged from service, updated records will be sent, and the lending restriction will be lifted.

The law was signed by the President on June 30 and is set to take effect in 60 calendar days — on September 1.

Previously, Orda.kz reported incidents in which soldiers allegedly took out loans using the names of fellow conscripts without their consent.

Original Author: Alexandra Mokhireva