WEEKLY REVIEW: Kazakhstan Government continues to work on banking sector recovery


WEEKLY REVIEW: Kazakhstan Government continues to work on banking sector recoveryKazakhstan is preparing for money and property legalization. The Government continues to work on the recovery of banking sector and financial support for small and medium businesses. It is planned to implement new format investment contracts with investors.

On Monday, April 14, Yerbolat Dossayev, the Minister of Economy and Budget Planning, said that KZT 250 billion will be allocated in the current year in order to solve the problems with “bad” assets of banks. These funds will be used to finance capitalization of Fund for problem loans under the National Bank.

The Minister also spoke about the plans for the implementation of major transport and logistics projects. In particular, he said, that before July 1 of the current year it is scheduled to start the construction of three dry cargo terminals to expand transmission capacity of the Aktau seaport. In the same time there will be launched the construction of a dry port on the territory of “Eastern Gate” special economic zone.

Dossayev informed that in 2014 the Government to allocate KZT 100 billion for projects of small and medium-sized businesses. By April 20, 2014 “Baiterek” holding and “Damu” JSC will begin placing funds in banks. Half of the allocated funds will be used to refinance previous loans, the other half – to finance new projects.

Tuesday, April 15 Prime Minister Karim Massimov took part in the meeting of Heads of Governments of the Customs Union and the Common Economic Space member-states. The main topic on the agenda was the discussion of the draft Treaty on the Eurasian Economic Union. The meeting also addressed a number of issues related to oil and gas industry, agriculture, rail and road transport.

On the same day Massimov held a round table with Russian Prime Minister Dmitry Medvedev. During the talks, the parties discussed issues of Kazakh-Russian cooperation development as well as further collaboration within the CU and the CES.

On Wednesday, April 16, Regional Development Minister Bolat Zhamishev, during the discussion of the draft law “on permissions and notifications” in the Majilis, said that with the adoption of the law, new resolutions will be introduced via regulatory legal acts not below the level of presidential law or decree.

On Thursday, April 17 Minister Y.Dossayev at Government Hour in the Senate said that 5 existing industrial programs are integrated in a single program of regions’ development. Moreover, for enhancing the autonomy of local governments, 4 types of taxes are to be transferred to local budgets. They are taxes on small businesses, taxes for individuals on the property, transport and land tax.

On Friday, April 18, the Ministry of Education reported that the Government of Kazakhstan will award 34,115 educational grants for 2014-2015 academic years. The Government will provide 12,000 grants that will cover the costs of studying engineering sciences and technologies, above 5,000 for teacher training specialties, and 2650 grants for agricultural and veterinary studies.