On August 13, a petition calling for a ban on online loans in Kazakhstan was posted on the E-petition platform. The initiator is Khak-Nazar Public Foundation, Ulysmedia.kz reports.
According to the authors of the petition, despite the progress in digitalisation, online loans seriously threaten financial stability of citizens. The ease of obtaining loans, high interest rates and non-transparent loan terms often lead to a rising debt burden, particularly among the vulnerable groups of the population. The petition notes that the lack of strict regulation of microfinance organisations (MFOs) and microcredit companies (MCOs) builds a stairway to debt traps.
«Along with debt pits, online loans have triggered the rise in crimes, such as fraud, theft and extortion, due to the inability to repay the loan and meet debt obligations,» the organisation headed by Nurzhan Zhakupov states.
The authors of the petition call on the Government of Kazakhstan to take immediate measures to protect citizens and ensure economic stability. However, the petition collected no signatures a day after it was posted. The petition will stay active until September 6.
