Financial situation is stable

Dec 24. Kazpravda

By Rysty ALIBEKOVA

Financial situation is stableAccording to preliminary data, the level of GDP in 2013 will be 6%.

Chairman of the National Bank Kairat Kelimbetov informed on the basic principles of monetary policy, credit availability, preliminary results of the financial controller for the current year and about foreign reserves, at the briefing in the Central Communications Service under RK President.

The situation in the financial and currency market, he said remains stable. Tenge exchange rate, which is also stable, in November fluctuated between 152.7 and 154.3 tenge per dollar. This is a normal corridor, in which the currency was in a managed float regime.

The National Bank did not intervene in this process, except for smoothing of certain speculative leaps.

– In general, economic results of the year are good, stated the head of the National Bank. — GDP growth, according to preliminary data, will be 6%, inflation about 5%, — the lowest level, probably in the history of independent Kazakhstan. This suggests that the Government, together with the National Bank pursues sound macroeconomic policy.

According to K. Kelimbetov, the growth in deposits over 15% demonstrates confidence to Kazakhstan’s financial sector, in particular to banking sector and the national currency.

– This year we have started to implement two very important orders of the President, he said. The first is the launch of the credit market, which is growing slowly after the global financial crisis of 2008-2010, and, second is consumer lending. The Board of the Bank has already adopted a number of relevant decisions.

Commenting on the response to the President’s order, given to them at the enlarged session of the Government to improve the situation in the consumer finance sector, — the Chairman of the National Bank said that in two years the consumer portfolio increased by 100%. In absolute terms, the increase was approximately 16 % and it is a small proportion. For comparison, today in Russia and in some countries of Eastern Europe this portfolio increased by 20-30%.

– But when portfolio increases with the growth rate of over 30%, it causes concern about he quality of granted loans, — said the head of the bank. – Having analyzed the overall situation with the second-tier banks, we came to understand that we need to prevent overheating. At the current moment the level of non-performing loans in this area is low — less than 10%, and in key banks it is 3-5%. This is the global average level. But we agreed that from February 1, 2014 the growth of portfolio of consumer loans in banks should not exceed 30 %. Otherwise, the National Bank reserves the right to respond to the situation.

During the press conference, the head of the National Bank also informed that the National Bank’s reserves and reserves of the National Fund jointly exceeded USD 93.9 billion. Until the end of the year they will grow fast enough and achieve 100 billion $US.

As for the creation of a Single pension fund, Kairat Kelimbetov noted that currently the NPF transfers relevant assets: this work has been completed on 4 funds and until April 1 next year it will be completed on 5 funds.

According to preliminary results, a complex situation was observed in many assets. The National Bank, of course, seeks to prevent destabilization in this area. The assets will be taken at the current value, but later, after consolidation of all savings, they will be reevaluated. Obviously, the losses will be identified, about which the Chairman of the NB promised to inform in detail in future report.

According to him, the task for the SNPF is the preservation of assets and the development of the concept of their management in the upcoming term. In this regard, a good piece of news is that the level of commission of the SNPF will be reduced by half compared to commissions of private pension funds. And the ability to receive returns, including in the securities market, in the NPSF is expected to be higher.

– Most importantly, the board will be created to develop the concept of pension assets’ management for the long term, — concluded the country’s chief banker of the country.

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