LOANS ISSUED

12 Months Ended

Mar. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans issued as of March 31, 2023, consisted of the following:


	Amount Outstanding		Due Dates	Average Interest Rate		Fair Value of Collateral		Loan Currency

Mortgage loans*	$	534,154	April, 2023 - March, 2048	9.00	%	$	534,154	KZT
Right of claims for purchased retail loans	121,177		January, 2023 - March, 2027	15.00	%	121,177		KZT
Uncollateralized bank customer loans	$	46,970	January, 2023 - March, 2043	25.00	%			KZT
Collateralized Bank customer loans	17,653		May, 2023 - March, 2028	2.00	%	17,636		KZT/RUB
Car loans	$	102,269	April, 2023 - April, 2030	25.00	%	$	102,247	KZT
Subordinated loan	5,039		December, 2025	3.00	%	—		USD
Loans issued to policyholders	$	1,488	June, 2023 - February, 2024	15.00	%	$	1,752	KZT
Other	300		March, 2024 - September, 2029	2.00	%	—		EUR

Allowance for loans issued	(2,792)

Total loans issued	$	826,258

*Fair value of collateral for the mortgage loans is the minimum amount of market value of the pledged immovable property and outstanding loan amount.

Freedom Bank KZ provides mortgage loans to borrowers on behalf of the JSC Kazakhstan Sustainability Fund ("Program Operator") related to the state mortgage program "7-20-25" and transfers the rights of claim on the loans to the Program Operator. Under this program, borrowers can receive a mortgage at an interest rate of 7%, for 20 years. In accordance with the program and trust management agreement, Freedom Bank KZ carries out trust management of transferred mortgage loans, and transfers all repayments of principal amounts of mortgages plus 4% of the 7% interest to the Program Operator and is recognized as interest expense. The remaining 3% of the 7% interest is retained by Freedom Bank KZ as interest income. Under the program and trust management agreement, Freedom Bank KZ is required to repurchase the rights of claims on transferred mortgage loans, when the loan principal amount and interest payments are overdue 90 days or more. The repurchase of overdue loans is performed at the loan nominal value.

Since the Freedom Bank KZ transfers the right of claim of those loans with recourse for uncollectible amounts due at maturity, retains part of interest from those loans, and agrees to service those loans after the sale, Freedom Bank KZ has determined that it retains control over the mortgage loans transferred and continues recognizing the loans. As Freedom Bank KZ continues to recognize the loans, it also recognizes the associated liability in the amount of $440,805 as of March 31, 2023, which is presented separately as liability arising from continuing involvement in the Consolidated Balance Sheets. As of March 31, 2022 the corresponding liability amounted to $6,447.

As of March 31, 2023 and March 31, 2022, mortgage loans include the state mortgage program "7-20-25" with a principal amount of $463,114 and $21,310, respectively.

Freedom Bank KZ has an agreement with FFIN Credit, a start-up created and controlled by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov, to purchase uncollateralized retail loans. FFIN Credit is a non-bank credit institution that issues loans in Kazakhstan under simplified lending procedures. FFIN Credit was created as a pilot project to test and improve the scoring models used for qualifying and issuing loans. The principal operation of FFIN Credit is to provide loans to customers online using biometric identification and its proprietary scoring process. After completion of the pilot launch, it is anticipated that the ownership of FFIN Credit will be sold by Mr. Turlov to the

Company. The Bank has legal ownership over purchase from FFIN Credit uncollateralized bank customer loans. However, in accordance with U.S. GAAP requirements, the Company does not recognize those loans as uncollateralized bank customer loans, since effective control over the transferred loans is maintained by FFIN Credit. Instead, the Company recognizes the loans as right of claims for purchased retail loans from FFIN Credit presented on the consolidated balance sheets within loans issued. As of March 31, 2023 and March 31, 2022, right of claims for purchased retail loans in the amount of $121,177 and $35,293, respectively.

Loans issued as of March 31, 2022, consisted of the following:


	Amount Outstanding		Due Dates	Average Interest Rate		Fair Value of Collateral	Loan Currency

Mortgage loans	52,227		April 2022 - March 2047	11.86	%	52,134	KZT
Right of claims for purchased retail loans	35,293		April 2022 - March 2026	15.00	%	35,293	KZT
Uncollateralized bank customer loans	100		April 2022 - March 2047	10.00	%	—	KZT
Subordinated loan	5,033		December 2022-April 2024	4.89	%	—	USD
Subordinated loan	1,256		December 2022-April 2024	7.00	%	—	UAH
Other	123		February 2022-Febraury 2027	2.50	%	—	USD
Loans to policyholders	43		July 2022 - March 2023	12.02	%	284	KZT

Allowance for loans issued	$	(1,629)

Total loans issued (recasted)	$	92,446