February 24. Information Center - The Kazakh government, the National Bank, and
the Agency for Regulation and Development of Financial Markets signed an
agreement on coordination of macroeconomic policy measures for the next three
years, the Astana Times reports citing Kazakh Prime Minister’s press service.
living standards and the well-being of the population is the main priority of
the country’s social and economic policy. Therefore, coordination of monetary,
fiscal, and structural policies, as well as financial sector development
policies will take place,” said Kazakh Prime Minister Askar Mamin.
measures envisioned in the document are categorised across three areas.
is improving macroeconomic sustainability that will be based on a
countercyclical macroeconomic policy stimulating business activity and
balancing low inflation, a stable financial system and economic growth.
area is the development of the financial market in line with the national concept
on financial sector development until 2030. The measures will be taken to
substantially expand bank lending to the economy.
area, which is enhancing long-term economic growth potential, will continue to
encourage economic diversification and integration into regional and global
fundamentally new institutional framework will be developed to create conditions
for high-quality and sustainable economic development in the context of the new
economic reality. Measures will be taken to establish a new economic structure
based on the competitive non-resource sector and integration into regional and
global value chains,” said Kazakh Minister of National Economy Asset Irgaliyev.
diversification will be focused on developing the agro-industrial complex,
industrialisation, and qualitative digitisation.
government will develop a concept for entrepreneurship development aimed at
creating favorable conditions for businesses in the country. As part of a
package of urgent measures to stimulate business activity, the government will
significantly simplify regulatory policy by reducing the administrative burden
on business entities,” he said.
As part of
the agreement, the National Bank will focus on gradually reducing inflation,
making long-term savings in local currency attractive and enabling businesses
to plan long term investments.
the effectiveness of the monetary policy, the National Bank will take measures
to improve the efficiency of liquidity regulation. The measures taken with the
government to develop the government securities market will facilitate the
efficient use of liquidity in the market for economic needs. Efficient
liquidity binding will prevent overflow of funds to the foreign exchange market
reducing pressure on the exchange rate and inflation,” said National Bank Chair
for Regulation and Development of Financial Market will be responsible for
ensuring long term stability of the financial system, including by expanding
risk-based supervision tools. It will also review the interim prudential
measures introduced in 2020 to ensure the stability of the banking system and
business lending, said the agency’s chair Madina Abylkassymova.
greater liquidity for non-performing assets, the agency will also prepare
legislative amendments to remove existing legal and tax barriers and attract
private management companies to support distressed assets.
with the task set by Kazakh President Kassym-Jomart Tokayev, the people’s IPO
project will be revised to involve local and foreign retail investors in the
stock market as part of a broader effort to increase the number of private
Kazakh issuers with small and medium capitalisation.