Politics and Macroeconomics -- Kazakhstan Weekly News

Oil & Gas Production in January-April

In January-April 1999 Kazakhstan produced 7.932 million tonnes of oil, the same amount as a year ago, the National Statistics Agency reported.

According to the same agency, the natural gas output reached 3.146 billion m³, up 3.3% on the year.

The production of gasoline fell 21.7% to 403,000 tonnes in the same period and the production of fuel oil dropped by 50.2% to 516,300 tonnes. (Reuters)

Working Group for Foreign Investors Issues

Deputy Prime Minister and Foreign Affairs Minister, Kasymzhomart Tokaev, will be heading a new interdepartmental group to deal with applications by foreign investors. The working group was established by a presidential decree and aims to respond to particular appeals, complaints, and requests by foreign companies in connection with their business in Kazakhstan. It may also make proposals to the government with a view to improving the investment climate in the country. The deputy prime minister said, in particular, that Kazakhstan should liberalise the legislation on land, natural resources, and oil. According to him, tax incentives will be retained for strategic investments.

The members of the working group include the heads of ministries of state revenues, finance, justice, as well as chairmen of investment and some other agencies. (Interfax & Reuters)

National Bank May Decrease the Refinancing Rate

The National Bank of Kazakhstan (NBK) is planning to decrease the refinancing rate once the financial market has accommodated the floating exchange rate for the Tenge, the Chairman of NBK, Kadyrzhan Damitov, said at a news conference last week. The current refinancing rate has been kept at 25% since last November. According to Mr. Damitov, this is adequate given the interest rates on the securities and credit markets. (Reuters)

Two World Bank Loans Signed in Astana

The World Bank (WB) Country Director for the Central Asian States, Kiyoshi Kodera, signed loan agreements with two Kazakhstani ministries on 19 May in Astana. The first loan, worth USD 42.5m, is granted to support the implementation of the country's health reform. The second loan—USD 16.5m— is to finance the reform of the legal and judicial system. The agreements were signed, on behalf of Kazakhstan, by Minister of Health, Education, and Sport, Krymbek Kusherbaev and Minister of Justice, Baurzhan Mukhamedzhanov, respectively. Both loans are provided for 20 years with a 5-year grace period at the LIBOR rate. (Interfax)

Almaty Investment Summit Scheduled for 3-4 June

According to a spokesman of the National Investment Agency, the 3^rd international forum, Almaty Investment Summit, will take place in Almaty on 3-4 June. It is expected that the president of the European Bank for the Reconstruction and Development will attend the summit as well as representatives of the world's large oil, energy, and financial companies. The participants will cover issues dealing with infrastructure, energy and natural resources, agriculture, and consumer goods production. (Interfax)

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