25.04.2006, 17:20 2674

Mechanisms of external duty regulation to be developed in private sector

Astana. April 25. Kazakhstan Today - The Prime Minister of Kazakhstan Daniyal Akhmetov assigned to develop mechanisms of regulation of external duty in private sector at the governmental session, the agency correspondent reports.

"The Ministry of Economics, National bank and the Agency for regulation and supervision of financial market and financial organizations’ work are to undertake complex analysis of external loan growth of the banks of the second level. Thus, it is also necessary to estimate influence of growth of external loan on inflation and present proposals on mechanism of external debt regulation in private sector with calculation of its optimum criteria and proportions," D. Akhmetov said.

"The inflationary background defines, in many respects, growth of bank loans of the second level, expanding monetary units mostly through the growth of consumer crediting in economy …one of key factors of inflation growth," D. Akhmetov said.


By the end of 2005 the size of external debt in private sector reached $39.1 billion or 70 % to GDP. Thus, 35.5 % of external debt in private sector has been generated by the banks of the second level, saved loans’ volume of which reached $13.9 billion, 47 more percent generated due to inter firm debts.

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