The Jogorku Kenesh has approved a bill in the third reading, establishing the maximum interest rate at which pawnshops can lend. Initially, the Ministry of Economy and Commerce proposed setting the maximum rate at 47% per annum. Minister Daniyar Amangeldiyev stated that setting the rate lower could drive pawnshops to operate in the shadow economy.
However, lawmakers reduced the maximum rate to 29.83% per annum by the third reading. According to MP Dastan Bekeshev, if the president signs the bill and the amendments come into force, around 50% of pawnshops in the country could close.
Bekeshev further mentioned that desperate pawnshops would remain in the market, capable of maintaining a business with a turnover of 15 million soms and at least 1,000 clients. This turnover would provide an average income of $1,000 for the pawnshop owner after taxes, employee salaries, rent, utilities, and other expenses are paid, as stated in his Telegram channel.
