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Government, National Bank Project 4-5% Economic Growth in 2015 -6°C /-2°C WEDNESDAY, JANUARY 14, 2015 No 1 (67) www.astanatimes.com Kazakhstan Steps Up Efforts in EBRD to Lend 10 Billion Tenge for Search for Peace in Eastern Ukraine On-lending to Small Businesses in Kazakhstan, Damu Fund to Act as Guarantor by MSMEs outside the country’s By Michelle Witte urban centres. The loan will be the first action under the EBRD’s new GAITHERSBURG, MD – The $200 million Kazakhstan MSME European Bank for Reconstruc- Framework, which intends to in- tion and Development has agreed crease access to medium-term lo- to provide a five-year loan of 10 cal currency funding for MSMEs billion tenge (US$54.7 million) to in the country. Kazakhstan’s Bank CentreCredit The loan will be guaranteed by for on-lending to micro, small and the Damu Entrepreneurship Devel- medium-sized businesses in the opment Fund and accompanied by country, the EBRD reported on a technical assistance programme Dec. 23. At least 60 percent of the to build BCC’s internal capacities loan will be earmarked for busi- in the MSME sector. Funds will be nesses outside the country’s two channelled through local commer- main cities, Astana and Almaty. cial banks, microfinance organisa- Bank CentreCredit (BCC) is Ka- tions and leasing companies that zakhstan’s sixth largest bank, with focus on projects in rural areas, a network of 20 branches, and while technical assistance tailored works with micro, small and me- to each partner financial institu- dium-sized businesses (MSMEs) tion will be provided as part of the President Nursultan Nazarbayev (l) of Kazakhstan had an informal meeting with German Chancellor Angela Merkel to promote bilateral cooperation as well as regularly. The loan is intended to package. discuss the situation in Ukraine in Berlin on Jan. 9. help improve access to financing Continued on Page A5 that is why I am ready to continue and impasse over the lingering ceded by two successive visits of By Zhanara Abdulova talking to leaders in both Kyiv and crisis. President Nazarbayev to Kyiv and Moscow, as well as in European Ukrainian President Petro Po- Moscow, during which the Kazakh ASTANA – Amid the ongoing capitals, in a bid to promote pro- roshenko was first to announce on leader discussed with his coun- Eurasian Economic pressure and sanctions between gress in negotiations over lasting Dec. 29 that a meeting in the so- terparts ways of overcoming the the West, Russia and Ukraine, peace in eastern Ukraine,” Presi- called Normandy Format will be Ukrainian crisis. President Nursultan Nazarbayev dent Nazarbayev maintained dur- held in the Kazakh capital Astana After the meetings, Nazarbayev Union Launches of Kazakhstan said recently that he ing his annual end-of-year news on Jan. 15. Moscow, for its part, again discussed the issue in his holds out hope for a chance to rec- briefing last December. confirmed Jan. 15 as a possible telephone conversations with oncile the opposing parties, bring- Despite mounting tensions, date for the meeting on Ukraine. President Poroshenko, President in Challenging Times ing them to the negotiating table to some of the opponents seem to The announcement of that date, of France Francois Hollande and By Michelle Witte the three countries saw their po- agree on a common stance. brighten up on hearing there still since then negotiated extensively Chancellor of Germany Angela sitions in the World Bank’s Do- “Both Ukraine and Russia are exists a push for peace in the but with no confirmation from the Merkel. The long-awaited Eurasian ing Business Report improve. It equally close to Kazakhstan and midst of widespread pessimism four participating parties, was pre- Continued on Page A8 Economic Union (EEU), the sin- is hoped that the new union will gle market for goods, services and continue that process. labour uniting Armenia, Belarus, EEU leaders have expressed Kazakhstan and Russia, has taken interest in making official trade effect, though dire conditions in contacts with potential partners the union’s largest economy may including the EU immediately, Government, National Bank Project 4-5% be dampening some enthusiasm and the union is currently in ne- for the launch. gotiations over free trade zones The EEU agreement went into with India, Israel, Turkey, Uzbeki- effect on Jan. 1 for Belarus, Ka- stan and Vietnam. Russian Deputy Economic Growth in 2015 zakhstan and Russia, with Arme- Foreign Minister Vasily Nebenzya political instability caused by the barrel at the end of June 2014 to will be aimed at mitigating the effects nia officially joining on Jan. 2. has said that some 40 countries or By Danna Bupezhanova conflict in Ukraine and consequent $63 per barrel on Dec. 22. of external factors to ensure social Kyrgyzstan is set to join in May, state groups have expressed will- introduction of reciprocal sanctions Kazakhstan’s economy grew 4.2 and economic stability in the country. and Tajikistan is in discussions ingness to create free trade zones ASTANA – The Government and by the United States and the Euro- percent during January-November, The communiqué highlights about joining. with the EEU, Sputnik Interna- the National Bank of Kazakhstan pean Union on the one hand and the document said. In January-Oc- three main directions, including The new union is organised into tional reported on Dec. 31. will seek to achieve real economic Russia on the other hand, resulted in tober, its foreign trade turnover de- conducting countercyclical eco- several governing bodies. Su- Unlimited access to the procure- growth in the country of 4-5 per- destabilisation of macroeconomic creased by 8.3 percent compared nomic policy through the imple- preme authority rests with the Su- ment markets of other member cent next year, the two organisa- situation, the communiqué stated. to the same period in 2013. Due to mentation of the state programme preme Eurasian Economic Coun- states is also a major benefit, as tions said in a joint communiqué on Accelerating growth of the gross the fall in world prices for oil and of infrastructure development cil, which is made up of the heads is increasing cross-border trade major directions of economic poli- domestic product (GDP) in the base metals and decrease in the Nurly Zhol for 2015-2019, in- of state of the member nations. across Kazakhstan and Russia’s cy for 2015 published on Dec. 24. United States and the completion volume of exports of oil, coal, fer- creasing the competitiveness of The Eurasian Economic Commis- long land border and attracting The document reviews econom- of the third round of the Federal roalloys, copper and aluminium, Kazakhstan’s economy and sup- sion (EEC) operates as its regu- foreign investors seeking access to ic situation in Kazakhstan in 2014, Reserve’s quantitative easing pro- Kazakhstan’s commodity exports porting small and medium-sized latory body, with an EEU court Russia’s larger market to take ad- underlining negative effects of ag- gramme led to the strengthening of decreased by 4.9 percent. Imports enterprises (SMEs). The priorities in Minsk and the EEU Develop- vantage of investment incentives gravating economic conditions in the U.S. dollar and rising interest of goods decreased by 14.5 percent also include maintaining macro- ment Bank in Astana. The new in Kazakhstan. Access to trans- the world and outlining plans on rates, which, along with the in- due to the reduction in imports of economic stability and ensuring fi- common market comprises more port infrastructure will be eased fighting consequences of their in- crease in the extraction of shale oil machinery and equipment, chemi- nancial stability through strength- than 170 million people and has and transport costs and timelines fluence in 2015. in the U.S., resulted in the decrease cal products and food products. ening the financial system and the a combined gross domestic prod- are expected to be lowered. With The general slowdown of eco- of the world price for Brent crude According to the statement, in recovery of the banking sector. uct, calculated reflecting purchas- new rail and roadways in progress, nomic growth and increasing geo- oil by 45.2 percent, from $115 per 2015, Kazakhstan’s economic policy Continued on Page A4 ing power parity, of more than $4 transport is hoped to become a trillion. major new sector of Kazakhstan’s The EEU, Kazakh leaders have economy. repeatedly stressed, is purely eco- For the union’s citizens, as this nomic. Writing for the European newspaper has noted, paperwork Council on Foreign Relations on requirements will be slashed, and Astana, Ankara Want to Grow Jan. 12, Dosym Satpayev, direc- accessing work permits and pen- tor of the Risk Assessment Group sions across the EEU should be as and co-founder of the Alliance simple as in citizens’ home coun- of Analytical Organisations of tries. Medical care and education, Mutual Trade to $10 Billion, Kazakhstan, noted that it was at including preschool access, is also Astana’s initiative that the un- to be available in all member coun- ion’s basic principles contain tries to all citizens of the union. language about respecting each The union has and continues to Strengthen Strategic Partnership member state’s political system, face criticism. Past criticism has framework of what is called Joint “The date for this visit will be Another session took place the which means that members do not often focused on the EEU as an By Altair Nurbekov Strategic Planning Group (JSPG) set in the nearest time, and it is following April in Almaty. have to make political changes attempt to recreate the Soviet Un- in the Turkish capital on Dec. 28- expected to take place in Febru- Idrissov’s meeting with Cavu- as a result of closer integration.
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