WEEKLY REVIEW. We’ve stabilized banking system – Prime Minister Massimov


Muratbek Makulbekov

WEEKLY REVIEW. We've stabilized banking system - Prime Minister MassimovAmid the world financial and economic crisis the Government of Kazakhstan took measures to mitigate its consequences. The international expert community noted the efficiency of the antirecessionary measures of Kazakhstan’s authorities.

At the sitting of the Government, which was held on Tuesday, August 31, Minister of Economic Development and Trade Zhanar Aitzhanova has announced the draft forecast of socio-economic development of the country for 2011-2015.

According to the forecast, the rate of growth of the country’s real GDP is to be at level of 4.1 percent by 2015. The forecast was formed taking into account tendencies of the world economy, situations in the world commodity markets and prospects of development of the sectors of the Kazakh economy in the first half-year of 2010. As Z.Aitzhanova emphasized, the forecast is based on oil prices in 2011-2015.

Then Kazakh Minister of Finance Bolat Zhamishev represented draft budget for 2011-2013 which was formed on the basis of major forecast of macroeconomic indexes for 2011-2015. According to B.Zhamishev, the national budget revenues for 2011 are estimated at KZT 4.49 trln. In 2012 the revenues will make up KZT 4,37 trln, in 2013 – KZT 4.77 trln. “The national budget expenditures for 2011 are planned at the volume of KZT 4,65 trln, for 2012 – KZT 4,95 trln, for 2013 – KZT 5,16 trln”, the Minister added.

The Government approved the draft budget for 2011-2013.

Besides, Minister of Economic Development and Trade Zhanar Aitzhanova introduced draft law “On guaranteed transfer from the National Fund of the Republic of Kazakhstan for 2011-2015”. “Taking into account the market rate of USD 1 – KZT 150, annual amount of the guaranteed transfer will make up KZT 1.2 bln. As of August 1, 2010, the sources of the National Fund make up KZT 4.5 bln”, the Minister said.

On the same day Kazakh Prime Minister Karim Massimov received a delegation of the Korber Foundation headed by Executive Director for International Affairs Thomas Paulsen. The Premier informed the Foundation representatives about the main dimensions of social economic development of Kazakhstan, governmental measures to stabilize financial sector and ensure stability of the banking system as well as the State Forced Industrial-Innovation Development Program, the measures taken on diversification of the country’s economy and about the realization of public investments in the sphere of education, healthcare etc.

Kazakh Prime Minister also answered several questions regarding the presidency of Kazakhstan in the OSCE, the agenda of the upcoming Summit of the Organization in Astana. Besides, Karim Massimov informed that Kazakhstan took an active part in the process of regional integration and security as well, touching upon the situation in Kyrgyzstan and humanitarian aid provided by Kazakhstan to the neighboring countries of Kyrgyzstan and Afghanistan.

The meeting was held within the framework of the Year of Germany in Kazakhstan which served an additional impetus to the Kazakh-German cooperation.

On Wednesday, September 1, Prime Minister Karim Massimov together with Chairman of the National Bank Grigory Marchenko and Chairman of the Board of ‘Samruk-Kazyna’ National Welfare Fund Kairat Kelimbetov were received by Head of the State Nursultan Nazarbayev. The President was informed of the plan on restructuring BTA Bank that was approved by the Agency on Financial Supervision on August 31. N. Nazarbayev noted that as a result of the proper strategy the state stabilized its banking system. At a briefing for journalists Grigory Marchenko said that debt restructuring of Alliance Bank and Temir Bank had been completed this year. “Thus all the three banks, which started the restructuring in spring last year, completed it successfully so far. The total amount of written-off debts is about USD 11 billion”, G. Marchenko said.

On Thursday, September 2, the Government of Kazakhstan approved the draft State Program on Education for 2011-2020. Vice Minister of Education and Science Mahmetkali Sarybekov presented the document.

According to this program, 14 percent of higher education institutions of Kazakhstan will pass international specialized accreditation. All higher education institutions of Kazakhstan will bring in European system of credits. 20 percent of institutions will conduct two diplomas education jointly with foreign higher education institutions. Half of Kazakhstan’s institutions will have innovative systems, scientific laboratories, technology parks and centers. ‘Youth policy will be included into the Program as a special vector of it. The realization of the youth policy will be aimed at educating patriotism, spiritual culture and forming national identity in the Kazakhstani youth’, Sarymbekov said.

The Program will be realized in two stages, the first one is 2011-2015 years and the second one is 2016-2020 years. About KZT 151.1 bln will be invested into the Program for 2011-2013 years. Further investments will be revised.

On the same day the Government approved Zhassyl Damu industrial program for 2010-2014. Introducing the program, Minister of Environmental Protection Nurgali Ashimov noted that within the Zhassyl Damu program there would be carried out work on some directions: green economy development; improvement of the management systems of environment quality and etc. “It is planned to allocate KZT 350 bln for the program”, N. Ashimov noted.

At the sitting of the Government held on September 2 Prime Minister Karim Massimov said that the Government of Kazakhstan had to architect a perfect picture of further activities for protection of the economy and people of our country.

‘Taking into account all kinds of past experience we must plan all our further activities so that people and economy of our country to be protected and competitive’, k. Massimov said. ‘The tasks that were set by the Head of the State at the beginning of 2009 on stabilization of banking system are now accomplished’, the Premier emphasized. In this regard he expressed gratitude to the Agency for Regulation and Supervision of Financial Markets and Financial Institutions, SamrukKazyna, National Bank and second tier banks.

‘I believe we have passed the test of these tough years and time of difficulties and crises and the situation is stable now’, the Premier resumed.

On Friday, September 3, Prime Minister Karim Massimov held a regular session of the State Commission on Economy Modernization under the Government of Kazakhstan. The Commission considered the draft programs on development of electric energy complex and tariff policy in Kazakhstan. The documents are developed within the framework of the State Program on Accelerated Industrial and Innovative Development for 2010-2014.