UAPF and National Bank to finance economy's priority sectors
The funds will reach the second-tier banks on a recoupment basis at the commercial and market rates, the Minister says.
In order to meet the President's instruction to provide to the National Bank to the economy's priority spheres, half of 600 billion tenges will be provided to the second-tier banks from the Unified Accumulative Pension Fund (UAPF). It was said by Finance Minister Alikhan Smailov.
It would be better to address this question to the National Bank. And, I, being the Finance Minister, acquire the information that the National Bank plans to allocate half of the sum at the expense of the UAPF, another half will be provided at the expense of the National Bank. The funds will reach the second-tier banks on a recoupment basis at the commercial and market rates. They will be allocated to the priority sectors of the economy, as the head of state said. Now we need to establish a mechanism to control over the targeted use of the funds on the directions and projects which are a priority for our economy," said the Finance Minister on the sidelines of a presentation of budgetary amendments in the Majilis.
He noted that at the market rates, the savings of the Pension Fund should be invested and make a profit so the UAPF's assets grow.
So, the funds should be invested. In this case, it is about investment in our economy at the market rates. Therefore, it is normal, and all country did and do it, they invest in their economies at the market rates, thus, firstly, accumulating the main savings bulk, as well as increasing investment components," said Alikhan Smailov.
We note in his Address President Nursultan Nazarbayev instructed the National Bank to provide early tenge liquidity to the banks not less than 600 billion tenges to provide affordable credits to priority projects.
Source: BNews.kz
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Kazakh deputy criticizes performance in mechanical engineering sector despite funding infusion
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The deputy stated that many industrial companies acquire vehicles and equipment only (780 projects or 49.5%) with the support received from the Industrial Development Fund, which has nothing to do with the development of the industrial sector.
Moreover, according to the industry review of the National Bank, a weighted average capacity utilization in the manufacturing industry stood at a mere 51.1% in the fourth quarter of 2023. This raises a question of whether annual capital infusions in new projects are reasonable, said the deputy.
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Kazakhstan recovers 40bln tenge of illegally acquired assets
Images | primeminister.kz
Today was held a regular meeting of the Commission on the return to the state of illegally acquired assets under the chairmanship of Prime Minister of the Republic of Kazakhstan Olzhas Bektenov, primeminister.kz reports.
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Kazakhstan turns to high-value added manufacturing with building polyethylene plant it Atyrau region
Images | primeminister.kz
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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.
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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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