Problems and prospects of long-term loans in Republic of Kazakhstan

Abstract

To date, long-term lending acts almost as the only reliable and affordable source of funding for both business entities and individuals. However, long-term loans, in addition to obvious advantages, have a number of risks, both for the bank and credited to the organization. In addition, there are now a lot of problems in the fi eld of long-term loans. The article examines the most pressing problems for debt and solutions to these problems. Complexity of the analysis for long-term loans, as opposed to short-term, is that it is necessary to consider a number of environmental factors in general, often with macroeconomic nature. The author comes to the conclusion that the scope and level of long-term lending in Kazakhstan depends on government policy, not only regarding the fi nancing of priority sectors and social projects, but also on the formation of distinct patterns of interaction between the parties, taking into account risks to both parties and market uncertainty.