Kazakhstan has introduced the institution of the microfinance ombudsman for the first time. Its primary objective is to protect citizens’ rights and assist in pre-trial dispute resolution, particularly those related to microloans, overdue debts, or debt collection agencies. The Ombudsman will act as an independent arbitrator, and only individuals who are clients of microfinance organizations will be able to seek assistance. Notably, these services are entirely free of charge. Experts note that the ombudsman’s activities will help foster the development of the microloan market within the legal framework. Additionally, the institution will encourage organizations to implement best service practices. There are currently banking and insurance ombudsmen operating in Kazakhstan.
«The ombudsman’s decision is binding for the microfinance organization and must be implemented within 30 days. The competence of the microfinance ombudsman does not include cases that have been referred to court or have entered into legal force. He also does not consider cases with unproven circumstances or those that have been resubmitted,» noted Gadilbek Akim, spokesperson for the Kazakh Agency for Regulation and Development of Financial Market.
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