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Nazarbayev denies rumors on further devaluation and denomination of Tenge - president's press office
Astana, February 26 2009
Kazakh President Nursultan Nazarbayev calls forecasts and allegations on further Tenge devaluation and denomination groundless, and sees no factors for revocation of licenses of any commercial banks of Kazakhstan, the President told a Wednesday working meeting with the Prime Minister, leaders of the government's financial block, heads of the National Bank and SamrukKazyna National Welfare Fund.
"Nazarbayev denied rumors on further tenge devaluation or denomination and revoking licenses of any Kazakh commercial banks, noting the absence of conditions for such radical measures," the president's press office reported.
According to the press office, during the meeting Nazarbayev was briefed on the progress of the implementation of the government's anti-crisis program for 2009-2011.
In particular, he was informed that the total amount of $4 billion allocated from the National Fund for stabilizing financial system have been transferred to the second-tier banks.
In this connection Nazarbayev "underlined one more time, that the money must reach the borrowers through a minimal amount of intermediary powers."
Moreover, Nazarbayev paid special attention to the need for supporting local producers, specifically by means of granting them a priority in distribution of state-guaranteed orders, as well as raising the local content (purchasing goods and services from Kazakh producers - IF-K) in joint projects with foreign companies. Nazarbayev instructed deputy Prime Minister, Umirzak Shukeyev, and SamrukKazyna head, Kairat Kelimbetov, to take the matter under personal control.
"Nazarbayev also gave several instructions aimed at prevention of unemployment growth and job cut at local and foreign enterprises working in Kazakhstan," the press office reported.
Moreover, the issues of supporting agriculture were also discussed during the meeting. "Nazarbayev spoke about the necessity for soonest satisfaction of requirements of agricultural raw materials processors for working assets."
Nazarbayev also gave orders to intensify work on solving problems of housing construction financed by individual investors and emphasized that despite the moratorium on small- and medium-sized enterprises (SMEs) audits, the issue of keeping up with the budget revenue plan is of great importance under the current situation.
According to the press office, Nazarbayev also pointed to the need for reducing expenditures by central and local executive authorities, lowering the quantity of large-scale events, devoted to various dates, and underlined that republican and local budgets must be extremely money-saving during a period of crisis overcoming.
As reported, in late November 2008 the government adopted an anti-crisis program.
The total value of the anti-crisis program is over 2.2 trillion tenge (or 20% of GDP) including public monies and funds from other sources.
A total of 1.2 trillion tenge, or $10 billion will be allocated from the National Fund in addition to the monies budget for 2009-2011.
About 480 billion tenge, or about $4 billion, will by provided to support the financial sector.
Besides, the government suggests that 360 billion tenge of public monies, or about $3 billion, should be injected in the real estate sector to finish the housing construction projects in Astana and Almaty, support the mortgaging lending system, and optimize the state housing construction program.
120 billion tenge, or $1 billion, is going to be allocated to bolster the small- and medium-sized businesses.
Another $1 billion is to be injected in the agricultural sector to encourage its development.
One more billion dollars the government is planning to spend on breakthrough infrastructure and industrial projects.