Kazakhstan Government holds a sitting

Home > Sections > News > News of December 2009 > Kazakhstan Government holds a sitting

Kazakhstan Government holds a sitting

When speaking at the Government’s sitting, Kazakhstan’s PM Karim Massimov praised the “Road Map” Country Regions Development Program. The Prime Minister called it “one of the most successful programs launched in the current year to mitigate the impact of the global crisis”.

According to preliminary data, Kazakhstan GDP growth at the year end will stand in the range of 0.5% to 1%. Estimated inflation rate will make up 6.3%, with estimated unemployment rate standing at 6.3% - 6.5%, the Prime Minister informed.

“Major tasks of the anti-crisis program have been successfully addressed. 6.2 million square meters of housing have been commissioned this year. There is a solution with regards to all the troubled construction sites [pre-financed by future property owners and stalled due to drying up of loans].

According to the Prime Minister, the greatest challenge was the financial sector. Head of the Government acknowledged that “sometimes uneasy and tough decisions had to be taken”. “As a result, the banking system has been stabilized; external debts of the banks have been remarkably reduced; and with regards to three troubled banks (BTA, Alliance and Temir) negotiation teams have reached principle agreements with creditors”.

“Out of approximately USD 15 billion of the three banks’ debts, about USD 10 billion will be written off by external creditors. 2009 has been a year of full stabilization of the banking sector”, K. Massimov summed up.

“In 2010 we have to take a decision on how the state will step out of these banks”. According to Mr. Massimov, participation of the government in the banks’ authorized capital is a temporal measure. It was designed only for the stabilization period.

“I believe that agreements reached with regards to the customs union of Kazakhstan, Russia and Belarus to be launched Jan 1, 2010 will enable Kazakhstan businesses to expand their markets. If before this initiative they only dealt with 15 million people, now they are getting a market of 170 million people. It is a vast opportunity for businesses”, K. Massimov said.

“A new issue on the agenda is greater efforts to enhance competitiveness of the domestic products… for consumers the new environment will be beneficial: more products, lower prices…”, emphasized the Prime Minister. According to the Prime Minister, launch of the customs unions will be the most remarkable development of 2010.

In 2010 the Government will focus on industrial policy, Road Map Country Development Program, support to S&MBs. The Prime Minister noted that conditions should be put in place so that banks would be interested in extending loans to the economy.

The Prime Minister noted that 2009 should have been one the toughest for the global economy. The impact of the global financial crisis on Kazakhstan could be compared to the collapse of the USSR. According to the Prime Minister, the Government, local authorities and people have gained an invaluable experience. “As part of the global economy, we have experienced the crisis hands on”, K. Massimov summed up.

Kazinform