Official Source of the
Prime Minister of the
Republic of Kazakhstan
Close button

National Bank observes activation of banks in implementation of the Program of Concessional Lending to Priority Economic Sectors

Monday, 14 October 2019, 14:37:18

At the Government session chaired by Prime Minister Askar Mamin, Chairman of the National Bank Erbolat Dossaev reported that for the first 9 months of 2019, the situation in the financial market have remained stable.

Inflation is formed within the targeted corridor of 4-6%. In September 2019, annual inflation slowed to 5.3% from 5.5% in the previous month. The largest contribution to inflation is made by the continued increase in food prices, which reached its maximum value from the beginning of 2017 at 9.1%.

“Meat prices increased by 13.5%, for bakery products and cereals — by 12.7%. These categories of goods rose in price against the background of rising world prices and export volumes,” Dossaev said.

According to him, inflation is helped by prices for non-food products and paid services. The annual increase in prices for non-food products amounted to 5.4%, which is the minimum since October 2015. The decrease in gas prices in annual terms amounted to 4.8%, solid fuel — 3.5%. Prices for paid services for the year increased by 0.7%, which is associated with a decrease of 8.2% in tariffs for regulated services.

“According to the results for this year, inflation, considering our estimates, will remain within the given corridor and will be at the level of 5.7 — 5.8%. The main inflationary factor is consumer demand, reinforced by budget spending,” said the head of the National Bank.

To prevent the risks of inflation going beyond the target corridor, Sep. 9, 2019, the base rate of the National Bank of Kazakhstan was increased to 9.25%, while maintaining the interest corridor. The extension of terms and the decrease in the volume of notes issued are continuing. Notes with a maturity of 6-12 months amounted to 78% at the end of September compared with 43% at the end of May 2019. For May-September 2019 the volume of notes in circulation decreased by 33.3% from 4.3 trillion tenge to 2.9 trillion tenge. From the maximum value in February 2019, the decrease was about 40%.

The situation in the domestic foreign exchange market in September 2019 was under pressure from the oil market. After the jump in oil prices to $69 per barrel on Sep. 16, it subsequently dropped to $57.7 per barrel on Oct. 2. As of Oct. 10, oil was worth $59.1 per barrel.

As Dossaev emphasized, as a result, the exchange rate from the beginning of September to October 11 changed in the range of 385.27–390.12 tenge for $1, the weakening for this period amounted to 0.5%. As of Oct. 11, 2019, tenge exchange rate amounted to 389.51 tenge for $1, having weakened by 1.4% since the beginning of the year.

“According to preliminary data, the National Bank’s gold and currency reserves as of Oct. 1, 2019, amounted to $28.8 billion. Since the beginning of the year, it has decreased by 6.8% or $2.1 billion as a result of repayment of a currency swap with banks and outflows from customer accounts in foreign currency abroad. For September 2019, gold and foreign exchange reserves increased by 2.1% as a result of foreign currency receipts from the Government issuing eurobonds, growth in the volume of fixed-term foreign currency deposits of banks with the National Bank and gold purchases,” explained Dossaev.

The volume of deposits since the beginning of this year decreased by 5.5% to 17.5 trillion tenge at the end of August this year, which is associated with the conducted in the 1st quarter of this year measures to improve banks. In April-August, the growth of deposits amounted to 1.9%, or 327 billion tenge.

Meanwhile, the substitution of deposits in foreign currency by tenge deposits continues. Deposits in national currency for 8 months of this year increased by 3%, while foreign currency deposits decreased by 14.5%. As a result, the dollarization level of deposits decreased from 48.4% at the beginning of the year to 43.8% in August 2019.

For the period from April to August 2019, the loan portfolio of the banking sector increased by 6% or 750.9 billion tenge to 13.2 trillion tenge.

“I am observing the activation of banks in the implementation of the Program of Concessional Lending to Priority Sectors of the Economy in the amount of 600 billion tenge. Oct. 11, 2019, banks are considering 347 projects worth 236.7 billion tenge, 181 projects worth 130 billion tenge have been approved, 118 loans worth 43.2 billion tenge have been issued,” Dossaev said.

As part of the implementation of the 7-20-25 Mortgage Program, 9,873 families received loans for 113.8 billion tenge. The program contributed to the growth of the mortgage portfolio of banks by 33.3% per year to 1.6 trillion tenge.

Chairman of the Board of the Atameken National Chamber of Entrepreneurs Ablay Myrzakhmetov reported on the local content in public procurement for 9 months 2019. According to him, over this period, there has been a growth trend in such areas as light, furniture and food industries, as well as building materials in several regions of the country. As of July 1, the indicator was 2%, today this figure is 20%, having increased by 18% in three months.

News feed
10 July 2020, 23:55
Forward purchasing, state of crops and food stocks — development of agro-industrial sector of Kazakhstan
10 July 2020, 21:35
Berik Sharip relieved as chair of SK-Pharmacy LLP
10 July 2020, 20:32
Working trip to Atyrau region: Tugzhanov holds emergency meeting on epidemiological situation in region
10 July 2020, 15:07
Government sums up results of socio-economic development for first half of 2020
09 July 2020, 16:13
Operational Headquarters on COVID-19 keeps situation in regions under control
09 July 2020, 14:15
Government's anti-crisis measures: Restoring economic growth and supporting SMEs
07 July 2020, 18:40
Aigul Shaimova appointed vice minister of national economy
07 July 2020, 18:35
Madina Zhunusbekova relieved as vice minister of national economy
07 July 2020, 18:29
Nariman Mukushev relieved as vice minister of labor and social protection of the population of Kazakhstan
07 July 2020, 18:20
How development indicators of AIFC financial market changed during pandemic?
07 July 2020, 16:56
Investment attraction, large-scale construction and international recognition — how the main city of Kazakhstan developed
07 July 2020, 12:10
Tollways, repair and maintenance of roads, introduction of new technologies — interview with Chair of Roads Committee Sairanbek Barmakov
02 July 2020, 23:50
New format of dealmaking and transition to distance education — how online discussions of global economy during the pandemic took place
02 July 2020, 12:07
State Commission approves measures to stabilize epidemiological situation in Kazakhstan
01 July 2020, 18:37
Astana Finance Days: Experts on challenges and opportunities of Islamic finance and fintech industry in post-pandemic era
30 June 2020, 17:49
Prime Minister Askar Mamin holds session of Council of Eurasian Development Bank
30 June 2020, 16:45
Prime Minister of Kazakhstan Askar Mamin held a telephone conversation with Chair of the Russian Government Mikhail Mishustin
30 June 2020, 13:18
Annual demand for IT specialists reached over 30 thousand people — Ministry of Digital Development, Innovation and Aerospace Industry
30 June 2020, 11:18
AIFC proposes to create EduTech Center and Educational IT Alliance
30 June 2020, 11:08
By 2030, educational institutions of Kazakhstan will train over 3 million specialists of new formation — Ministry of Education and Science
30 June 2020, 11:06
Reduction in shadow economy in 2019 gave additional revenue of 1.5 trillion tenge to budget of Kazakhstan
30 June 2020, 10:54
Prime Minister Askar Mamin instructs to implement large-scale project ‘’Digital Bilim” to increase digital literacy
30 June 2020, 10:32
By 2025, shadow economy to be reduced to 20% of GDP — Ruslan Dalenov
30 June 2020, 10:12
97% of entrepreneurs switched to online cash registers — Ministry of Finance
29 June 2020, 18:59
How the Year of the Volunteer implemented, what kind of support the country's media receive and how civil society develops — Aida Balayeva reports to the public
29 June 2020, 17:12
Government session to be held June 30 in Ukimet Uyi
28 June 2020, 09:56
Video Digest: Main events of the week, No. 67
27 June 2020, 10:28
Prime Minister Askar Mamin congratulates media workers on their professional holiday
26 June 2020, 18:59
Bolat Tlepov appointed vice minister of information and social development of the Republic of Kazakhstan
26 June 2020, 18:49
Daniyar Yesin relieved as vice minister of information and social development of the Republic of Kazakhstan
26 June 2020, 18:14
Results in social sphere for 5 months of 2020: Restoring employment and providing new types of support
26 June 2020, 14:14
Azhar Giniyat appointed vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 14:12
Lyazzat Aktayeva relieved as vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 14:06
Marat Shoranov appointed first vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 13:39
Daniyar Vagapov appointed deputy chair of National Bank of Kazakhstan
25 June 2020, 19:05
Prime Minister Askar Mamin holds meeting of Commission on Digitalization under President of Kazakhstan
25 June 2020, 18:24
Prime Minister Askar Mamin introduces Minister of Healthcare Alexey Tsoy
25 June 2020, 08:58
Roman Sklyar discusses development of cooperation in agriculture with German companies
24 June 2020, 18:00
Prime Minister Askar Mamin holds meeting of Council on Transition to Green Economy under President of Kazakhstan
24 June 2020, 10:25
Roman Sklyar holds meeting of Project Office for Entrepreneurship
23 June 2020, 18:59
Gabidulla Ospankulov relieved as vice minister of information and social development of the Republic of Kazakhstan
23 June 2020, 13:18
In second half of 2020, Kazakhstan will continue to reduce oil production
23 June 2020, 12:58
Small and medium-sized enterprises can apply for new loan deferral — Madina Abylkassymova
23 June 2020, 10:59
Prime Minister Askar Mamin congratulates civil servants of Kazakhstan on their professional holiday
23 June 2020, 10:24
Prime Minister Askar Mamin congratulates police of Kazakhstan on their professional holiday
23 June 2020, 10:21
Prime Minister Askar Mamin instructed to ensure readiness for heating season
23 June 2020, 10:11
Government adopts measures to improve business climate in Kazakhstan
23 June 2020, 10:08
Beibut Atamkulov on heating season: Particular attention will be paid to preparing health facilities and residential buildings
23 June 2020, 09:57
As part of preparations for autumn-winter period, country plans to repair 8 power units, 59 boilers, 44 turbines — Ministry of Energy
23 June 2020, 09:34
Production of small and medium-sized businesses amounted to 31.2 trillion tenge in 2019 — Ministry of National Economy
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.