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Abzal Kredit
Microfinance Organization
АБЗА Л КРЕДИТ
Investors Presentation
August, 2008
АБЗА Л КРЕДИТ
Agenda

Investment Highlights

Sector overview and trends

Who we are?

Financial Highlights

Our partners

Contact details
АБЗА Л КРЕДИТ
Investment Highlights

Favorable business and regulatory environment

Strong potential for growth of the market

Transparent company business and ownership structure

Strong management team

Strong loan portfolio and assets growth

Stable growth of client base
АБЗА Л КРЕДИТ
Summary of sector overview

1,086 MFIs registered as of
January 1, 2008, among which
only 400 are active;
MFIs registered and active (2007)
1500
514%
496%
338%
1200
1086
948
321%
900


Microfinance services are
provided by banks
(Microlending program by
EBRD), credit unions, nonbanking finance organizations
and microlending agencies;
As of January 1, 2008 total
loan portfolio of active
Kazakhstani MFIs was more
than KZT 56 billion (USD 462
million) representing only 0.4%
to GDP
123%
745
697
101%
600
356
0%
300
177
354
159
0
2004
2005
Registered MFIs
Growth rate of registered MFIs
2006
2007
Active MFIs
Growth rate of active MFIs
Retail loans to GDP
14 000,0
12 726,0
0,40
12 000,0
10 139,5
0,45
0,40
0,35
10 000,0
0,30
7 453,0
8 000,0
6 000,0
0,25
5 870,0
0,20
0,20
0,15
4 000,0
0,08
0,10
0,12
2 000,0
0,05
-
Source: “DAMU” EDF, National Bank
Note: USD/KZT exchange rate - 120.3
2004
2005
GDP (KZT bln)
2006
2007
Retail loans / GDP (%)
АБЗА Л КРЕДИТ
Sector overview



Favorable legislative and business
environment for entrance of
international investors;
MFIs personnel structure (2007)
21%
4%
Actively supported by the
Government through “DAMU”
Entrepreneurship Development Fund
and multinational institutions such as
EBRD and ADB.
Strong potential for growth of the
market
1%
74%
Over 50 pers.
21 to 50 pers.
6 to 20 pers.
Up to 5 pers.
Loan portfolio (active MFIs)
350

As of 1 January, 2008 total number of
granted loans by active MFI's was
321 thousand only
55,6
300
250
321,3
200
145,6
150
108,3
100
50
0
62
12,7
15,8
0,9
2003
Source: “DAMU” EDF
Note: USD/KZT exchange rate - 120.3
7,6
4,6
2004
2005
Number of loans
2006
2007
Amount (KZT bln)
60
55
50
45
40
35
30
25
20
15
10
5
0
АБЗА Л КРЕДИТ
Microfinance sector trends

Economic developments and demographics for Kazakhstan position the sector
for significant growth;

Low microfinance penetration in the market supports high levels of business
margins

Recent shortage of liquidity in banks facilitates growth of microfinance
organizations;

Active support of the sector by the government through a number of initiatives,
including legislative and regulatory changes, financing programs to support small
business;

Entrance of international investors to financial sector is welcomed!
АБЗА Л КРЕДИТ
Regulatory Environment

Special laws and acts adopted:
- Law “About banks and banking activity”
- Law “About microlending organizations”
- Law “About credit unions”

Organization structure for MFCs is allowed as LLP and public fund.

MFCs are not allowed to collect deposits from population and are limited with max
amount of loan (currently USD 70 thousand).

State owned credit bureau established in 2004 (currently obligatory for banks
only).

New initiatives to support microfinance market are promoted by Kazakhstani
Association of Microfinance Organizations (AMFOK) established in 2004 in
cooperation with Microfinance Center (Poland) and CAMFA.