Although the debt restructurings at three of the leading Kazakh banks have now been completed, there are few signs of a meaningful revival in risk appetite among many of the country’s lenders.
According to the latest statistics, although net lending rose by 0.3% in August, it has shrunk by 5.4% over the year, despite the fact that the Kazakh economy expanded by 7.9% over the same period and the full-year forecast is for GDP growth of at least 5%.
Although there are signs that asset quality is stabilizing, with provisions for non-performing loans falling to 33.2%, overall NPLs remain a drag on lending sentiment in the sector.
Commenting on the latest statistics, Milena Ivanova-Venturini, banking analyst at Renaissance Capital in Almaty, says: "The results are disappointing as we still cannot see any strong signs of recovery in lending in Kazakhstan. However, the stabilization in...
