National Bank forecasts an inflation level of about 6-8% in 2013
"The good news is that inflation is at the lowest allowed level. In general, the inflation is the lowest during the recent 12-13 years. The annual inflation in Kazakhstan had been about 7% and now it stands at 6%," said Grigory Marchenko, Chairman of National Bank of Kazakhstan.
Almaty. January 11. Kazakhstan Today - The Chairman of Kazakhstan's National Bank at his first press conference in 2013 has announced that the economy of Kazakhstan is stable and he is confident in the future.
According to Caspionet, during the coming 24 month the main bank of the country forecasts an inflation level of about 6-8% and price increases should not go beyond the limits established by the National Bank. By the way, the augmentation of the inflation level occurred amid an increase in prices for paid services, which increased by 9.3% during 1 year.
"The good news is that inflation is at the lowest allowed level. In general, the inflation is the lowest during the recent 12-13 years. The annual inflation in Kazakhstan had been about 7% and now it stands at 6%," said Grigory Marchenko, Chairman of National Bank of Kazakhstan.
Food prices rose by 5.3% and in 2011 this figure exceeded 9%. Non-food prices increased in prices by only 3.5%. Such food products as meat, flour, pasta, fish, fruits and vegetables have increased in prices the most. However cereals, sugar, oils and fats have become cheaper. Besides, the regulator feels optimistic not only because of the statistics. The National Bank reports that the stable growth will boost interest in private and legal entities for loans.
"We expect that in the medium term the inflation level will equal to about 6-8%. The GDP will grow by 5-6%. We are not expecting great changes in merging of banks but at the same time we believe that the amount of loaning will increase by 10-15%. I believe it is quite a good figure," Grigory Marchenko said.
According to preliminary data of National Bank during the first 9 months of 2012 lending amounted to over 9 trillion tenge and it is not the only advantage of the recent year. Grigory Marchenko also said that in December the external debt of the banking sector dropped from 14 billion to 11.3 billion US dollars. The peak foreign borrowing of domestic banks was recorded in July 2007, when the sector debt owed to creditors from abroad amounted to 46.5 billion US dollars, or nearly 50% of GDP. Today the figure is 6%. At the same time, the National Bank believes that in the nearest 12 month financiers need to address several challenges.
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Kazakhstan turns to high-value added manufacturing with building polyethylene plant it Atyrau region
Images | primeminister.kz
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the heads of the world's largest oil and gas chemical companies – President of China Petrochemical Corporation (SINOPEC) Zhao Dong and Chairman of the Board of SIBUR LLC Mikhail Karisalovб primeminister.kz reports.
The key issue is the joint construction of the first integrated gas chemical complex for polyethylene production at a cost of about $7.7 billion and a capacity of 1.25 million tonnes per year, which will account for 1% of the world's total capacity.
A tripartite protocol was signed during the meeting, officially finalising SINOPEC's entry into the project. The ownership structure of the plant is as follows: KazMunayGas 40%, SINOPEC 30%, SIBUR 30%.
Head of the Government emphasised the importance of the project due to its focus on the production of high value-added products.
A gas separation complex (GSC) will be built at the Tengiz field to supply the "Polyethylene" project with feedstock (ethane). The capacity of the GSC is 9.1 billion m3 of dry gas processing per year, of which 1.6 million tonnes of ethane is expected to be produced.
Ethane will be sent through the main pipeline from Tengiz to the Karabatan site (territory of FEZ NINT, Atyrau region), where the polyethylene plant will operate.
It is planned to produce about 22 grades of polyethylene using American licence technologies of Chevron Phillips and Univation, 40% of which will be premium grade. A wide range of applications for both industrial and household purposes makes polyethylene the most popular polymer in the world.
Polyethylene is used in the fields of medicine, prosthetics, defence, food industry, construction, space industry and others. This polymer is used in the production of a wide range of goods: from plastic wear-resistant pipes, construction materials, medicines, syringes, prostheses to bulletproof vests, clothing for astronauts and car parts. Target markets include Kazakhstan, CIS countries, China, Turkey and European countries. At the same time, for domestic consumption, the realisation price will be lower than the import price.
The Head of State has identified deep processing of hydrocarbons as one of the key areas of development of the oil and gas sector. The priority for our economy is high conversion production producing products with a rapid increase in added value in the technological chain with an export orientation. The added value between the initial feedstock ethane and the third conversion product polyethylene increases 20 times, from $80-90 to $1600-1800 per tonne. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country's economy as a whole. According to experts' calculations, the contribution to the country's GDP by 2030 from the implementation of the project is estimated at approximately 1.2%," Olzhas Bektenov said.
The construction of the plant is planned to be completed by 2029. During the construction period more than 8 thousand jobs will be created, during the operation period about 850 jobs will be created.
It was noted that the project is realised with the support of the Government. The plant will be built on the territory of a special economic zone with the provision of appropriate infrastructure and special tax regime. In this regard, Prime Minister emphasised the attention of the project participants to the need to maximise the use of local potential.
We on the part of the state provide comprehensive support in the implementation of projects important for the country's economy. At the same time, we expect you to increase the share of local content. For this purpose, it is necessary to determine the list of goods and equipment that will be mandatorily purchased from domestic producers. Special attention should be paid to training of Kazakhstani specialists and transfer of competences. It is important for us to maximise the attraction of local personnel, including for management positions in the project. We count on a similar approach in the implementation of other joint projects," Prime Minister emphasised.
Thus, in addition to the plant "Polyethylene" it is planned to build a gas separation complex and a trunk pipeline.
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Olzhas Bektenov and Head of the Sakha Republic Aysen Nikolayev discuss issues of trade and economic cooperation
Images | primeminister.kz
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the Head of the Republic of Sakha (Yakutia) Aysen Nikolayev, who arrived on a visit to Astana to participate in the opening ceremony of the Days of the Republic of Sakha in Kazakhstan, primeminister.kz reports.
The Republic of Sakha contributes to the development of Kazakhstan-Russia trade relations. The implementation of agreements reached at the level of the presidents of Kazakhstan and Russia on further expansion of bilateral trade and economic cooperation was reviewed.
Over the year, trade turnover between the regions of Kazakhstan and the Republic of Sakha has grown almost 2-fold, exceeding $160 million, with over 99% of exports of Kazakhstani goods. During the discussion a wide potential of mutual trade was noted and the parties' readiness to increase turnover in agricultural, industrial and IT spheres was outlined.
The parties confirmed their intention to intensify joint work on expanding the range of supplied goods and services, establishing direct contacts between business circles. It is expected that a new impetus to trade and economic relations will also be given by the launch of five major cross-border trade centres in Kazakhstan, including the Eurasia Cross-Border Trade Centre on the border with Russia.
Special attention was paid to the exchange of experience and technologies in the field of creative industries and digitalisation, as well as interaction between research institutes and educational institutions of Kazakhstan and the Republic of Sakha.
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