According to the visiting IMF representative, Julian Berengault, Kazakhstan has lost about 5% of GDP as a result of the world and Russian financial crises. Berengault met Marat Ospanov, Chairman of the Majilis, the Lower House of the Kazakhstani Parliament. He said that the implementation of reforms and Kazakhstan's economic policy were challenged in 1998 and that the year 1999 would be still worse. In his opinion, the Kazakhstani government and the National Bank should undertake a package of measures to make the economy less vulnerable. The Speaker of the Majilis said that the government will follow a tight monetary policy. However, if external negative factors do not affect Kazakhstan for a long time, he does not see a further tightening of monetary policy to be in Kazakhstan's interests. (Interfax & Reuters)

Kazakhstan's Investment Agency, established in place of the State Investment Committee, will be headed by Anvar Saidenov, former executive director of the Committee. Formerly, the Committee came under the direct control of President Nazarbaev. Now, as an agency, it will be under the control of the government. During the last week, the government appointed heads of six other state agencies. Of the key appointments, Nikolai Radostovets will head the agency for regulating monopolies and protecting competition, Zhaksybek Kulekeev will head the National Statistics Agency and Madienet Duisembaev the Agency for State Purchases. (Reuters)

The Kazakhstani Government is expected to make amendments to the 1999 budget on 1 February. The information was disclosed to Interfax by the Majilis Speaker Marat Ospanov. According to him, the budget will be "more tough and, therefore, more realistic". He predicts that budget spending will be cut by approximately 10%. (Interfax)

Reuters reported that the Prime Minister, Nurlan Balgimbaev, will speak on the government's economic policy in the Majilis on 3 February. He will also give proposals for the reduction of budget spending. Kazakhstan's 1999 budget was approved by the Kazakhstani Parliament in mid-December last year. The previous version of the budget projected a deficit of 3.1% of GDP and revenues totalling KZT 291bn. Spending was projected at KZT 345bn.