Almaty microfinance firm barred from issuing new loans for three months
A microfinance company in Almaty has had its operating licence suspended for three months. The decision came after the firm failed to follow a written directive from regulators. Authorities have now restricted its ability to issue new loans or modify existing ones.
The suspension was imposed by the regional office of the Agency for Regulation and Development of the Financial Market (ARDFM) in Almaty. The agency's local head ordered the penalty, though their name has not been disclosed in public records.
Under the terms of the suspension, aFinance Microfinance Organization LLP cannot enter into any new microloan agreements. This includes extensions or changes to current contracts. However, the company must still honour all obligations under loans already issued.
Clients with outstanding microloans remain legally bound by their original agreements. Any failure to meet repayment terms will still result in penalties for borrowers.
The three-month suspension limits the company's operations but does not cancel its existing commitments. Borrowers must continue repayments as scheduled, while the firm cannot take on new business until the ban is lifted. The regulator's action follows a confirmed breach of instructions by the microfinance provider.
