17 Jan 2022 15:08

Kazakh banks allocate around $30 mln for economic recovery in riots aftermath

ALMATY. Jan 17 (Interfax) - Kazakh banks have allocated more than 13 billion tenge, or around $30 million at the current rate, for economic recovery, cancelled penalties and fines for delays given during the state of emergency, and also wrote off loans to victims' families, the press service of the Kazakh Association of Financiers said on Monday.

In particular, the People's Bank of Kazakhstan will give 3 billion tenge for assistance to affected small- and micro-sized businesses and for the restoration of damaged facilities, as well as other urgent tasks. The bank has also provided 5 million tenge to the families of killed law enforcement and special service officers.

An affiliate of Russia's Sberbank provided to Almaty 550 million tenge. It also gave 10 new ambulances for the city's medical establishments and 10 passenger cars for the city's needs. The bank will also help repair and again put into operation the buildings of the National Library and the Central State Museum.

According to earlier reports, Kaspi Bank and its founders Vyacheslav Kim and Mikhail Lomtadze have provided 10 billion tenge to the People of Kazakhstan public fund.

Kazakh Association of Financiers Chairperson Yelena Bakhmutova was quoted in the report as saying that Kazakhstan's banks have managed to promptly restore regular services to clients despite the damage done to their operations.

"Their efforts to restore city infrastructure facilities, assist affected enterprises, law enforcement officers, servicemen, healthcare workers, and citizens deserve special respect," Bakhmutova said.

The People's Bank of Kazakhstan, the affiliate of Russia's Sberbank, Jusan Bank, the Kaspi.kz bank, Nurbank, ForteBank, Bank RBK, Home Credit Bank, Altyn Bank, Alfa-Bank Kazakhstan, VTB (Kazakhstan), and the Eurasian Bank cancelled the fines for delays given during the state of emergency, the press service said.

Kaspi.kz, Alfa-Bank Kazakhstan, Altyn Bank, and VTB (Kazakhstan) will write off loans of victims' families, it said.

Kazakh banks will consider applications from individuals, legal entities and private entrepreneurs who applied for deferral of loan payments on January 5-31, 2022. Deferrals are granted if there are objective reasons for the worsening of the financial situation or damage done in the emergency situation period, it said.

According to earlier reports, Kazakh businesses provided 12.36 billion tenge to the People of Kazakhstan social fund, while 6,500 Kazakh residents provided 10.1 million tenge to the fund as of January 17.

The National Chamber of Entrepreneurs said the amount of damage done to businesses in Kazakhstan as a result of the riots reached some 103.7 billion tenge, of which 102 million tenge accounts for Almaty, as of January 12. It was reported that more than 1,600 businesses were affected in 11 regions of Kazakhstan.