This story [1] was originally published on OpenDemocracy.net/en/.

This story [1] was originally published on OpenDemocracy.net/en/.
License: Creative Commons 4.0 - Attributions/No Derivities/
international.
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Kazakhstan is caught in a vicious cycle of debt. The pandemic has only made it worse
By: []
Date: None

Since the beginning of the global pandemic, Kazakhstanis who are heavily reliant on loans have plunged even deeper into debt.

For many citizens of this Central Asian state, they have turned to loans in an attempt to help offset uneven income growth over the past decade – to fulfil basic consumer needs, but also to pay for healthcare and property.

But during 2020 and this year, for many people, loans temporarily replaced wages. Many businesses and institutions were forced to suspend operations after the government announced a lockdown in March last year. The situation remained uncertain. Lockdowns were introduced and relaxed unpredictably by the authorities of the larger cities. This unstable situation meant businesses and institutions could not resume work, and as a result, many people have faced declining incomes or have lost their jobs.

In partnership with independent Kazakhstani media Vlast.kz and Mediazona, openDemocracy publishes a translated version of their new article on the 'debt trap' in Kazakhstan.

Credit after credit

Until the end of 2019, Aigul’s family had not fallen behind on loan payments. She used to work in a bank, while her husband was employed by a construction company. They took out several consumer loans for medical treatment, electronics and other household items, being fully confident that they would be able to pay them back without any problems.

The family did not have enough savings to make sizable purchases, so there was no alternative to taking out loans.

[1] Url: https://www.opendemocracy.net/en/odr/kazakhstan-caught-vicious-cycle-debt-pandemic-has-only-made-it-worse/