Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

National Bank observes activation of banks in implementation of the Program of Concessional Lending to Priority Economic Sectors

Monday, 14 October 2019, 14:37:18

At the Government session chaired by Prime Minister Askar Mamin, Chairman of the National Bank Erbolat Dossaev reported that for the first 9 months of 2019, the situation in the financial market have remained stable.

Inflation is formed within the targeted corridor of 4-6%. In September 2019, annual inflation slowed to 5.3% from 5.5% in the previous month. The largest contribution to inflation is made by the continued increase in food prices, which reached its maximum value from the beginning of 2017 at 9.1%.

“Meat prices increased by 13.5%, for bakery products and cereals — by 12.7%. These categories of goods rose in price against the background of rising world prices and export volumes,” Dossaev said.

According to him, inflation is helped by prices for non-food products and paid services. The annual increase in prices for non-food products amounted to 5.4%, which is the minimum since October 2015. The decrease in gas prices in annual terms amounted to 4.8%, solid fuel — 3.5%. Prices for paid services for the year increased by 0.7%, which is associated with a decrease of 8.2% in tariffs for regulated services.

“According to the results for this year, inflation, considering our estimates, will remain within the given corridor and will be at the level of 5.7 — 5.8%. The main inflationary factor is consumer demand, reinforced by budget spending,” said the head of the National Bank.

To prevent the risks of inflation going beyond the target corridor, Sep. 9, 2019, the base rate of the National Bank of Kazakhstan was increased to 9.25%, while maintaining the interest corridor. The extension of terms and the decrease in the volume of notes issued are continuing. Notes with a maturity of 6-12 months amounted to 78% at the end of September compared with 43% at the end of May 2019. For May-September 2019 the volume of notes in circulation decreased by 33.3% from 4.3 trillion tenge to 2.9 trillion tenge. From the maximum value in February 2019, the decrease was about 40%.

The situation in the domestic foreign exchange market in September 2019 was under pressure from the oil market. After the jump in oil prices to $69 per barrel on Sep. 16, it subsequently dropped to $57.7 per barrel on Oct. 2. As of Oct. 10, oil was worth $59.1 per barrel.

As Dossaev emphasized, as a result, the exchange rate from the beginning of September to October 11 changed in the range of 385.27–390.12 tenge for $1, the weakening for this period amounted to 0.5%. As of Oct. 11, 2019, tenge exchange rate amounted to 389.51 tenge for $1, having weakened by 1.4% since the beginning of the year.

“According to preliminary data, the National Bank’s gold and currency reserves as of Oct. 1, 2019, amounted to $28.8 billion. Since the beginning of the year, it has decreased by 6.8% or $2.1 billion as a result of repayment of a currency swap with banks and outflows from customer accounts in foreign currency abroad. For September 2019, gold and foreign exchange reserves increased by 2.1% as a result of foreign currency receipts from the Government issuing eurobonds, growth in the volume of fixed-term foreign currency deposits of banks with the National Bank and gold purchases,” explained Dossaev.

The volume of deposits since the beginning of this year decreased by 5.5% to 17.5 trillion tenge at the end of August this year, which is associated with the conducted in the 1st quarter of this year measures to improve banks. In April-August, the growth of deposits amounted to 1.9%, or 327 billion tenge.

Meanwhile, the substitution of deposits in foreign currency by tenge deposits continues. Deposits in national currency for 8 months of this year increased by 3%, while foreign currency deposits decreased by 14.5%. As a result, the dollarization level of deposits decreased from 48.4% at the beginning of the year to 43.8% in August 2019.

For the period from April to August 2019, the loan portfolio of the banking sector increased by 6% or 750.9 billion tenge to 13.2 trillion tenge.

“I am observing the activation of banks in the implementation of the Program of Concessional Lending to Priority Sectors of the Economy in the amount of 600 billion tenge. Oct. 11, 2019, banks are considering 347 projects worth 236.7 billion tenge, 181 projects worth 130 billion tenge have been approved, 118 loans worth 43.2 billion tenge have been issued,” Dossaev said.

As part of the implementation of the 7-20-25 Mortgage Program, 9,873 families received loans for 113.8 billion tenge. The program contributed to the growth of the mortgage portfolio of banks by 33.3% per year to 1.6 trillion tenge.

Chairman of the Board of the Atameken National Chamber of Entrepreneurs Ablay Myrzakhmetov reported on the local content in public procurement for 9 months 2019. According to him, over this period, there has been a growth trend in such areas as light, furniture and food industries, as well as building materials in several regions of the country. As of July 1, the indicator was 2%, today this figure is 20%, having increased by 18% in three months.


News feed
05 August 2020, 13:01
Prime Minister Askar Mamin informed about SK-Pharmacy’s measures to provide drugs to combat COVID-19
04 August 2020, 19:52
Interdepartmental Commission considers issues of Kazakhstan's access to complex of candidate vaccines for COVID-19
04 August 2020, 11:22
2.6 million students to study in distance format from beginning of academic year — Ministry of Education and Science
04 August 2020, 10:11
By new academic year, Government will provide computers to 500 thousand students from most needy families
04 August 2020, 10:03
Positive trend observed in fight against COVID-19 in Kazakhstan
04 August 2020, 10:02
Daily increase in incidence of COVID-19 in Kazakhstan decreased on average by almost one and half times — Ministry of Healthcare
04 August 2020, 09:56
In Kazakhstan, 4,422 schools provided with high-speed Internet over 8 Mbps
03 August 2020, 16:04
Government session to be held Aug. 4 in Ukimet Uyi
03 August 2020, 14:20
New program of Housing Construction Savings Bank "Zhas Otbasy" started July 1 in Kazakhstan
03 August 2020, 14:10
In 2021, Housing Construction Savings Bank plans to issue mortgage online
03 August 2020, 14:00
Transforming Housing Construction Savings Bank into Otbasy Bank and providing Kazakhstanis with housing — interview with Lyazzat Ibragimova
03 August 2020, 10:47
Shakhmardan Baimanov appointed chair of Committee on Youth and Family Affairs of the Ministry of Information and Social Development
03 August 2020, 09:32
Anuar Dzhumadildayev appointed chair of Treasury Committee of the Ministry of Finance
02 August 2020, 17:30
Video Digest: Main events of the week, No. 71
31 July 2020, 08:29
Prime Minister Askar Mamin congratulates Kazakhstanis on Kurban Ait
30 July 2020, 18:30
Yerbol Ospanov appointed vice minister of labor and social protection of the population
30 July 2020, 17:15
Increasing yield, ensuring phytosanitary safety and training of research personnel — how agricultural science develops in Kazakhstan
30 July 2020, 16:04
Allen Chaizhunussov appointed chair of the Board of QazExpoCongress
30 July 2020, 13:09
Prime Minister Askar Mamin instructs to develop additional measures to support business
30 July 2020, 08:58
Roman Sklyar's working trip to Tatarstan: Creating joint ventures and implementing investment projects
29 July 2020, 20:56
Interdepartmental Commission takes special control over implementation of President’s instructions
29 July 2020, 16:57
Increasing lending to SMEs, providing employment and social benefits to population — Ruslan Dalenov on measures to support economy
28 July 2020, 21:37
Mortgage on favorable terms and construction of affordable housing — development of housing construction in Kazakhstan
28 July 2020, 19:03
Prime Minister Askar Mamin holds meeting on development of Kyzylorda region
28 July 2020, 11:17
During pandemic, Internet and electronic government services became the first necessity — Bagdat Mussin
28 July 2020, 10:20
E-commerce market amounted to 435 billion tenge in first half of 2020
28 July 2020, 10:13
In first half of 2020, e-commerce in Kazakhstan increased by one and half times
28 July 2020, 10:06
Epidemiological situation in Kazakhstan stabilizing
28 July 2020, 10:00
Since introduction of quarantine in Kazakhstan, 29% decrease in CVI cases recorded
27 July 2020, 14:26
Government session to be held July 28 in Ukimet Uyi
27 July 2020, 12:03
Changing approaches to provision of medical care reduced burden on bed capacity of Almaty — Nadyrov
27 July 2020, 11:37
After launch of mobile resuscitation teams in Almaty, number of deaths from COVID-19 decreased
27 July 2020, 11:21
Nadyrov on COVID-19 in Almaty: Unloading hospitals, switching to telemedicine and forming drug warehouse
25 July 2020, 13:22
Video Digest: Main events of the week, No. 70
24 July 2020, 18:45
Tugzhanov in Mangystau region: Meeting with medical workers and checking warehouses of SK-Pharmacy
23 July 2020, 19:07
President Kassym-Jomart Tokayev receives Prime Minister Askar Mamin
23 July 2020, 17:24
Personnel training, teaching basics of entrepreneurship, expanding microcrediting in rural areas — how Enbek State Program implemented in Kazakhstan
23 July 2020, 09:07
COVID-19 Operational Headquarters strengthens control in regions
22 July 2020, 18:42
Eliminating spontaneous dumps, separating solid waste and protecting environment — Ministry of Ecology reports on implementation of President's instructions
21 July 2020, 22:49
COVID-19 situation stabilized in Kazakhstan: Daily growth in number of cases reduced, number of recovered increased
21 July 2020, 22:03
Kazakh-Russian plant for 1,200 new jobs to be built in Zhambyl region
21 July 2020, 14:09
Regions need to actively support projects until they receive the status of subsidized — Atameken NCE
21 July 2020, 12:19
Production of building materials in Kazakhstan increased 3.3 times — Ministry of Industry and Infrastructure Development
21 July 2020, 11:05
Over 2 thousand projects worth half a billion tenge approved under Economy of Simple Things
21 July 2020, 11:04
Number of ambulance calls reduced by 23% in two weeks — Ministry of Healthcare of Kazakhstan
21 July 2020, 10:54
Kazakhstan reaches stabilized level of epidemiological situation
20 July 2020, 18:39
Asel Zhanassova appointed vice minister of trade and integration of the Republic of Kazakhstan
20 July 2020, 17:47
Prime Minister Askar Mamin introduces First Vice Minister of Digital Development Bagdat Mussin
20 July 2020, 16:47
Investments — key to sustainable and high-quality economic growth
20 July 2020, 16:16
Government session to be held July 21 in Ukimet Uyi
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.