The government of Kazakhstan is introducing a financial literacy course for students at schools, colleges, and higher education institutions.
This initiative comes in response to the rising debt burden among the population, emphasizing the importance of managing personal finances. The goal is to help young people understand how to handle their money wisely, make informed choices regarding credit, and align their spending with their means.
To achieve this, the Ministry of Education will incorporate financial literacy courses into educational programs. Meanwhile, the Ministry of Science will be responsible for introducing these courses in higher education institutions.
Kazakhstan aims to educate 550,000 school and university students in financial literacy over the next three years, alongside training more than 8,000 teachers for this purpose. Already this year, 45,000 Kazakh citizens have taken "Financial Literacy Fundamentals" courses in eight regions across the country. The government is planning to expand this program to reach 60,000 people by year-end.
The need for such courses has arisen due to the high level of indebtedness in the country. Prime Minister Alihan Smailov stressed that as young people transition into adulthood, they need to grasp the principles of prudent financial management, particularly when dealing with loans and credit. Financial literacy education is a common practice in many countries and is viewed as a critical life skill.
In addition to education, the government is working on legislative amendments, in collaboration with the Financial Market Regulation Agency, to restrict excessive lending and minimize risks associated with consumer loans. These efforts include revising interest rates, loan amounts, and durations for microfinance organizations, particularly those offering payday loans. Prime Minister Smailov underlined the necessity of these legislative changes to address the country's over-indebtedness issues. The proposed amendments are currently being considered by the parliament.
The situation in Kazakhstan reflects a growing concern regarding personal debt, and these initiatives aim to promote financial responsibility and sustainable borrowing practices among its citizens.
It's worth mentioning that in the parliament, there are discussions about two draft bills that would amend tax and legislative acts. One of them includes a temporary (3-year) exemption from taxation for microfinance and debt collection agencies if they forgive debts of troubled borrowers. As of the beginning of last month, the total amount of consumer loans in Kazakhstan's banks reached KZT 9.2tn ($19.6bn), with the average debt per borrower being almost KZT 1.5mn ($3,100), and for problem consumer loans, it was KZT 1mn ($2,100).
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