Kazakhstan Responds to International Financial Instability

ASTANA, Kazakhstan, November 15 /PRNewswire/ -- According to a statement, the Kazakh Government is confident that the ountry's economy will continue to grow amid instability on global financial markets.

Kazakh banks are operating as usual: in spite of a decrease in funding, banks continue to extend credit - a growth of 53.8% this year (with August-October responsible for 4.9%). Borrowing requirements have been toughened however; as a short-term stabilisation measure the National Bank is granting liquid funds to banks to refinance their debts.

The Kazakh government is undertaking specific measures in order to offset the instability of the international markets. By the end of 2007, USD 1 billion will be allocated, and at least USD 3 billion will be earmarked in 2008. These funds will be used to:

- maintain mortgage market stability

- assist S&MBs

- promote further economy diversification

To curb inflation the National Bank will continue its strict monetary policies, while the Government will ensure balanced fiscal policies. The Government will also introduce reforms to further improve the country's attractive investment climate. Special attention will be paid to improving infrastructures like electric power, transport, telecommunications and communications.

This year Kazakhstan's real GDP rose by 9.7% year-on-year. According to estimates, despite current international markets conditions the rate in 2008 will not go below 5-7% which will be propelled by high prices for Kazakhstan's main exports - oil, metals and wheat. Dynamic development of exports will also support other sectors including S&MBs.

    
    For further information please contact
    Sarah Nicholson
    s.nicholson@group-ibc.com
    +44(0)207-233-9166