Exclusive Interview with president of Kazakhstan Development Bank

The Development Bank of Kazakhstan (DBK) and the Russia-
based Vnesheconombank
(VEB) signed the cooperation agreement in the beginning of 2006 in Astana, at
the presence of presidents of Kazakhstan and Russia, DBK's president Kambar
Shalgimbaev said during the interview held by Kazakhstan Today correspondent
about the organization of the mechanism of financing and bank service of
investment projects.



Kazakhstan Today: Kambar Basargabyzovich, what opportunities does the
signing of the agreement provide to Kazakhstan as a whole as well as the
Development Bank of Kazakhstan in particular?



K. Shalgimbaev: This one of imperative agreements that will allow the
Development Bank of Kazakhstan to involve investments of absolutely different
level and quality. Actually we have created financial maintenance for
integration processes.



The long-term cooperation agreement between Development Bank of Kazakhstan and
Vnesheconombank provides the organization of bank interaction in the field of
financing and service of the scaled investment projects, representing mutual
interest. It contains the principles of information interchange by consulting
services and coordination of joint actions of our banks.
We declared that on all post Soviet space that at Kazakhstan and Russia have
funds for realization of the investment opportunities corresponding to the
national interests. The agreement is also a component of the general business
plan, connected with the Development Bank of Kazakhstan emergence on foreign
markets.



Russia traditionally attracts the greatest interest among our clients. We are
glad to have reached the arrangements with Vnesheconombank and now we will
cooperate on both territories. The authority and potential of one of the
largest Russian banks is important for development of far abroad the
Development Bank of Kazakhstan.



Kazakhstan Today: Can you name investment projects already representing
mutual interest for Kazakhstan-Russian bank alliance? What selection criteria
will be applied?



K. Shalgimbaev: The projects will be selected by two banks
independently. The first principle is commercial recoupment. The second -
mortgaging maintenance. The third - it should meet the interests of two
countries. We will finance projects on market conditions.



It is quite premature to speak about concrete projects. I can only tell that
they will be realized in the sphere of power, mechanical engineering and
infrastructure. These are large enough projects with the cost up to $100
million.



This year we are opening the representative office in Moscow. It is the first
step that will allow us to closely work with Vnesheconombank.



Kazakhstan Today: How will shares of projects participation between
the Development Bank of Kazakhstan and Vnesheconombank be distributed?
K. Shalgimbaev: Conditions can be different: 50 by 50 or 60 by 40,
depending on the structure of the project and the degree of distribution of
risks.



Kazakhstan Today: Will new enterprises have joint venture format?



K. Shalgimbaev: it is preferable these projects include Kazakhstan
participation. Better than private pattern of ownership … But partners will
define possession share by themselves.



Kazakhstan Today: When do you expect the first results from Kazakhstan-
Russian interbank association?



K. Shalgimbaev: I think not earlier than in a year. It is a question of
large capital investments.



Kazakhstan Today: Do you consider Eurasian development bank your
competitor?



K. Shalgimbaev: Eurasian development bank is being created for solution
of problems of EurAsEC countries. It is absolutely different level; therefore
it is simply incorrect to speak about competition



Translated by Nataliya Shirinskikh