Kazakhstan's First Deputy Prime Minister, Uraz Dzhandosov, told journalists last week that he doesn't see any reason why Kazakhstan should experience a crisis like that going on in Russia. However, in his opinion, the Russian crisis has had a psychological impact on Kazakhstani banks which fear that a similar situation may happen in Kazakhstan. In addition, the crisis may significantly deteriorate Russia's economy which will negatively affect trade between the two countries. He did not give any estimation of the scale of a possible decrease in the trade turnover. Another aspect of how the crisis may influence Kazakhstan relates to investors. "We will be trying to persuade investors, who were oriented towards Russia, to switch to Kazakhstan," he said. (Reuters)

According to its Chairman, Kadyrzhan Damitov, the National Bank of Kazakhstan (NBK) is not going to raise the refinancing rate in the near future. However, he did not rule out changing the Lombard and overnight rates. The last time the refinancing rate was raised, in early August, it went from 18.5% to 20.5% while the overnight increased to 22% from 20% and the repo rate to 19% from 17%. Damitov dismissed rumours about the bank's intention to demand the compulsory sales of companies' hard currency proceeds. The head of the NBK has stated that despite an increased interest in hard currency from banks and individuals due to the Russian crisis, no restrictions will be imposed on hard currency operations. He added that the NBK will maintain its gold and hard currency reserves at around the existing level of US $2bn in order to support the Tenge. According to him, the Tenge/Dollar rate will not exceed 84.0 at the end of the year. (Reuters)

The NBK's Chairman has reportedly given more specific information on 1998's expected inflation level. He said that it will be between 6.0% and 7.0%, instead of a previous forecast of 8.0%, while the Tenge devaluation will be a bit higher—some 9.5%. He said that inflation has totalled 2.4% over the past eight months. (Reuters)

According to the Ministry of Finance's press service, only 84.9% of the planned state budget revenues and 89.3% of the planned republican budget revenues were received in the first half of 1998. Taxes were the major source of budget revenues. The state budget collected 90.4% of the target tax revenues. The republican budget received KZT 58,585m (some US $766m) which is 3.2% more than the planned figure. The VAT accounted for 41% of the tax revenues and corporate income tax, 12%. Revenues from financial operations totalled KZT 18,119m (about US $232m) of which the major part was received from privatising state property. The budget deficit was 3.5% of the GDP. It was only financed from non-inflation sources such as issues of government securities and foreign borrowings. (Interfax)

Starting from September 1, the Kazakhstani Government reduced tariffs for the services of natural monopolies. "This is a compromise between the monopolies and the government in order to support large enterprises and not let the monopolies die," the prime minister's press secretary told Reuters. According to a government press release, the large companies who will enjoy the reduced tariffs include Kazakhmys, Ispat Karmet, Aluminium of Kazakhstan, Sokolovsk-Sarbaisk Mining and Concentrating Plant, several coal mines and utilities. Electricity tariffs were reduced by 26.0% on average for both industrial and corporate consumers, budget-supported organisations, and agricultural manufacturers.

The national utility company KEGOC has introduced 5-10% discounts for consumers who pay in advance as well as 10-25% discounts for those who consume large amounts of electric power.

Intergas Central Asia reduced its tariffs by 4.7% for those who pay in advance for natural gas transportation.

The national oil transportation company Kaztransoil has reduced its tariffs by 0.9% to 10.3% depending on the terms of advance payment.

Beginning October 1, Kazakhtelecom will reduce the telephone subscriber payment by 7% on average for 157,712 companies and organisations. Also, charges for leased international analog circuits will be reduced by 5% for companies.