Prime Minister Nurlan Balgimbaev issued a decree on 26 March which requires that Kazakhstan's national companies and state enterprises take measures before 1 April to cut their administrative expenses. The decree puts restrictions on the number of top managers in national companies and on the use of vehicles, international telephones, mobile phones, and pagers. Employees have also been ordered to reduce travel expenses. An inventory of the companies' offices will be carried out with the goal of reducing excessive premises. The prime minister instructed the State Property and Privatisation Committee, various ministries, and the heads of local administrations to report on the implementation of the decree before 20 April. (Interfax)

Interfax, quoting an official from Kazakstan's Ministry of Energy, Industry, and Trade, Mrs. Usmanova, said that in order for Kazakhstan to be admitted to the World Trade Organisation it must try to obtain most-favoured-nation status for exports and bring its legislation into line with international standards. She said, "Kazakhstan is not in a hurry" to join the WTO and that domestic industries have to prepare for "stiff competition" on an open market. Usmanova added that Kazakhstan has been engaged in negotiations with the European Union for three years over Kazakhstan's desire to increase its rolled iron and steel quotas. (RFE/RL & Interfax)

According to the Minister of Labour and Social Protection, Mrs. Natalia Korzhova, Kazakhstan has fulfilled its obligations with respect to pension reform and therefore is expecting the second and third tranches of a USD 300m loan from the World Bank. The loan, which was approved last year, was intended to support Kazakhstan's pension reform. Negotiations concerning the second tranche of USD 100m will start on 12 April, the minister said. The last USD 100m is expected to be disbursed at the end of the year. According to the Finance Ministry, Kazakhstan has budgeted KZT 8.0-8.5bn (some USD 98m) each month for pensions. Of this amount, Almaty and Astana receive KZT 3.0bn. (Reuters)

Kazakhstan's upper house of parliament, the Senate, has turned down a legislative amendment by the Majilis, the lower house, on the distribution of tax revenues from the sales of petroleum products. The Majilis proposed that 85% of the revenues could be allocated to the state budget while the remaining 15% would go to local budgets. The Senators disagreed saying that this tax is considered an indirect tax and according to the legislation, all revenues from such taxes should be channelled to the republican budget. At the same time the Senate passed a second amendment whereby republican and local budgets will share revenues from the environmental tax. (Interfax)

Kazakhstan has not ruled out issuing sovereign Eurobonds before the year end provided that the situation on capital markets is favourable, the Deputy Finance Minister, Daniyar Abulgazin, said to Reuters. He suggested that the volume may not exceed USD 200m. According to the minister, the Kazakhstani Government has already met with representatives of the Paribas bank, and in April the Government intends talk with international financial institutions concerning the placement. (Reuters)

Kazakhstan issued a 3-year USD 200m Eurobond in December 1996 and a 5-year USD 350m Eurobond in September 1997. (Interfax)