Kazakhstan To Borrow $1 Billion To Support Priority Areas Of Economy
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Kazakhstan will attract loans totaling 154.7 billion Japanese yen, or about $1 billion, from the International Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank. Finance Minister Madi Takiyev announced this at a plenary session of the Mazhilis, Orda.kz reports.
According to him, the government will use the funds to finance priority areas of the economy.
The choice of the Japanese yen as the loan currency is due to low base interest rates in Japan, as well as the close correlation between the tenge and the Japanese yen. These funds will support the government’s priority measures, including financing important sectors of the economy,Takiyev said.
Takiyev noted that the loans will be provided for 11 years, including a five-year grace period. They will be repaid from the republican budget.
He also said that Kazakhstan’s public debt remains at a safe level and does not raise concerns among international financial institutions.
To date, the actual levels of debt indicators established by the Public Finance Management Concept remain within permissible limits. Kazakhstan’s financial stability is confirmed by high credit ratings with a stable outlook from leading international agencies. In addition, experts from major financial institutions assess the country’s public debt as low and manageable, which creates opportunities for long-term economic growth,the finance minister said.
He also recalled that Kazakhstan has been cooperating with the International Bank for Reconstruction and Development since 1992 and joined the Asian Infrastructure Investment Bank in 2017.
The law “On Ratification of Loan Agreements Between the Republic of Kazakhstan, the International Bank for Reconstruction and Development, and the Asian Infrastructure Investment Bank” was adopted in the first reading.
Original author: Alina Elgeldina
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