Key Events of 1998

Kazakhstan is still at a stage where the successful implementation of market reforms is as important to investors as valuations. There are several key elements of the market reform programmes for 1998 which are likely to determine the investor’s attitude towards Kazakhstan:

• Expected privatisation of five "blue chip" companies in the oil, gas, metals and telecommunications sectors,
• Introduction of new version of the Corporate Law,
• Strengthening of the private pension system and commencement of operations of private pension funds on the stock market,
• Creation of asset management companies ( as a part of the reform of the pension system)
• Further strengthening of the banking system and increasing capitalisation requirements for domestic banks,
• Lifting of the restriction on participation of foreign banks,
• Finalisation of nationwide transformation of the accounting system to meet international standards,
• Expected accession to the Word Trade Organisation.

The Government has announced its commitment to privatise part of its shareholding in five blue chip companies. The packages to be sold are sized as follows:

• JezkazganTsvetMet (copper producer) –5-20%
• MangistauMunaiGas (largest oil company)- 5-7%
• AktobeMunaiGas (fourth largest oil company) –5-15%
• Kazakhtelecom – 2-4.5%
• Ust Kamenogorsk Titanium and Magnesium Plant – 15.5%