The National Bank of Kazakhstan (NBK) is planning to allow Kazakhstani banks to increase the proportion of foreign capital in their aggregate authorised capital to 50% from the 25% that is currently allowed by law. Proposals concerning this change have been presented by the NBK to the Government. According to Interfax, on 1 October, 1998, foreign bank participation accounted for 18% of the Kazakhstani banks' aggregate authorised capital—it was 14% on 1 January, 1998. Of the 76 banks operating in Kazakhstan, 24 are with foreign participation. Over the first 9 months of this year, the number of state-owned banks has fallen from 5 to 1. Only ExIm Bank is presently state-owned. However, the Government intends to sell part of its share in the bank to a foreign investor. Currently, the International Finance Corporation (IFC), which intends to buy 15% of the bank's shares, is looking for a strategic partner. (Interfax & Reuters)

Deflation totalled 0.7pp in Kazakhstan in October, according to the National Statistics Agency (NSA). Over the first ten months of 1998, the consumer price index totalled 1.6%. The NSA explained that a number of factors caused deflation in Kazakhstan over the past four months including summer, whereby food prices dropped. Plus, the Antimonopoly Committee's resolution to freeze natural monopolies' prices affected prices for petrol and utility services. At the same time, the NSA noted high prices for socially valuable goods and the absence of people with money to buy them. (Interfax)

The president of the U.S.-Kazakh company Chevron-Munaigas, Phil Meek, told journalists in Almaty on 3 November that the Kazakhstani government has approved the feasibility study for the Caspian Pipeline Consortium (CPC) project, in which Chevron has a 15% stake. Mr. Meek expects that Russian experts will also approve the pipeline soon. Moreover, according to him, "the crisis in Russia is actually going to speed up the process because…what Russia needs right now is more foreign investment." The project's goal is to construct a 1,500 km oil pipeline from Kazakhstan's giant Tengiz oil field in the west of Kazakhstan to the Russian Black Sea port of Novorossiisk. Kazakhstan's oil will then be shipped by tankers to the Mediterranean. On completion of the project in 2001, the initial capacity of the pipeline will be 28 million metric tonnes per year (560,000 bpd). (Reuters)

After a news conference and talks with President Nursultan Nazarbaev on Tuesday, 3 November, Stephen Sestanovich, U.S. Ambassador at-large, said that Kazakhstan has a good chance of joining the World Trade Organisation (WTO) in 1999. By 1 March, 1999, Kazakhstan must submit to the WTO draft legislation and other materials concerning the steps the country is taking toward compliance with WTO membership requirements. (Reuters)