Kazakh Citizens Owe Nearly 7.5 Trillion Tenge to Second-Tier Banks, Amassing a Substantial Financial Debt
In Kazakhstan, the popularity of government-backed mortgage initiatives like the '7-20-25' program and 'Baspa Khit' continues to grow, with over 48,000 applications received under the '7-20-25' program by December 30, 2021, and around 42,000 loans totaling 370 billion tenge issued under the 'Baspa Khit' program.
The '7-20-25' program, offering a 7% interest rate, 20% down payment, and a loan term of up to 25 years, aims to improve housing affordability for middle-income citizens. Meanwhile, the 'Baspa Khit' program focuses on affordable housing and facilitating home ownership for first-time buyers and socially vulnerable groups.
These mortgage programs have significantly stimulated demand in the housing market by lowering borrowing costs and enabling more citizens to access mortgages. This increased demand encourages construction and real estate development, contributing to the growth of the construction sector, job creation, and overall economic activity.
Through enhanced housing affordability, these programs help improve quality of life and social stability by enabling greater homeownership rates. On the macroeconomic front, these programs support financial sector development by expanding mortgage lending and promoting credit discipline, although careful regulation is necessary to manage credit risks.
Despite the challenges posed by the COVID-19 pandemic, which caused Kazakhstan's budget to miss out on 2.4 trillion tenge, the effectiveness of desk control increased by 1.5 times last year. Thanks to improvements in tax and customs administration and digitalization, an additional 710 billion tenge was collected for the budget last year.
Erbolat Dosaev, the head of the National Bank, announced these figures at a government meeting, while Kazakhstan's Minister of Finance, Erulan Zhamaubayev, reported that state revenue amounted to 9.7 trillion tenge. It is worth noting that Kazakhstani citizens owe nearly 7.5 trillion tenge to second-tier banks, and business loan debts exceeded 7.3 trillion tenge.
As reported by Almaty.tv, the population in Kazakhstan is increasingly acquiring housing through mortgage programs under state support. These programs continue to play a significant role in Kazakhstan’s housing and economic landscape by making homeownership more accessible and supporting economic growth.
For precise and current figures or policy updates, one may refer to Kazakhstan’s Ministry of Housing, the National Bank, or specialized financial and real estate market reports from 2025, which are not covered in the provided search results.
The '7-20-25' program and 'Baspa Khit', being government-backed mortgage initiatives, are essential components in the finance sector, as they aim to improve housing affordability for the general public and stimulate demand in the housing market. These programs, by lowering borrowing costs and encouraging construction and real estate development, significantly contribute to the growth of the construction sector, job creation, and overall economic activity in business.
