Resolving consumer insolvencies in Central Asia

Consumer debt has surged in Kazakhstan and Uzbekistan following the COVID-19 crisis, with over-indebtedness and consumer defaults reaching remarkable levels. In 2023, the two countries—with support from the World Bank —introduced Central Asia’s first consumer insolvency mechanisms as a key policy measure to enhance financial stability and social welfare.  A preliminary assessment now suggests that while Uzbekistan’s system could deliver promising results, Kazakhstan’s system may fall short in relieving consumers from…