Queues at banks in Kazakhstan: non-cash payment is disabled

Due to the disconnection of the Internet in Kazakhstan during street riots non-cash payment stopped working – residents began to withdraw money en masse from ATMs, Sputnik Kazakhstan reported.

“Residents of the capital cannot pay by non-cash method, therefore, they withdraw money en masse from ATMs,” the newspaper’s correspondent reports from the scene. Transport communication – ground and air transport is violated, flights are canceled. Protesters seize administrative facilities and airports.

Banks have suspended the issuance of deposits. Due to the disconnection of the Internet throughout the country, customers do not have access to personal accounts in banks. All deposits in Kazakh banks are insured by the state for up to 15 million tenge (approximately 2.6 million rubles). If the return of deposits begins immediately, then a financial crisis will begin – not all banks have a cash reserve.

Russian subsidiaries in Kazakhstan will record losses due to the growth of non-performing loans and due to the depreciation of collateral on them. But if necessary, Russian banks will support their subsidiaries with money to avoid reputational problems.