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EBRD adopts new strategy for Kazakhstan
Kazakhstan has made strong progress towards the development of a prosperous
and sustainable economy. Sound macroeconomic policies have been rewarded by
high growth rates. Real GDP grew by 9.4 per cent in 2005 and at a similar rate
during the first half of this year. Revenues from high commodity prices have
been prudently invested in the diversification of the economy.
Support for this policy of diversification is key to the EBRD’s future
cooperation with Kazakhstan, as outlined in the Bank’s new strategy for
Kazakhstan, which was adopted by the Board of Directors today. The adoption
coincides with a state visit by President Nursultan Nazarbayev to the United
Kingdom. On Wednesday, he will attend a seminar on the country’s future
development where the EBRD’s new strategy will be presented.
The strategy commits the Bank to continued support for Kazakhstan. The EBRD
will engage actively to help the reform process, working with both the private
and public sector. The focus of the strategy is support for the
diversification of the economy, the strengthening of the financial sector as
well as an increased role for the Bank in infrastructure financing and
supporting foreign direct investment.
To implement these goals the EBRD’s main operational objectives are:
• Enterprise sector –Work across various sectors and promote projects leading
to higher energy efficiency; increase the capitalisation of enterprises
through equity investments; increase competition in the natural resources
sector by working with smaller companies and higher risk projects; continue to
finance smaller projects using the Kazakhstan Small Business Programme and
leasing facility.
• Infrastructure sector – Increase support in transport, energy and
telecommunication infrastructure development with a focus on non-sovereign
projects; selectively, the EBRD will take the lead in developing and engaging
in public-private partnerships with competitive tender processes.
• Financial sector – Promote strategic foreign direct investment and also open
up the capital base of local banks to financial investors through IPOs or
private placements; facilitate competition by providing debt and equity,
particularly to medium size banks and non-bank microfinance institutions;
special emphasis on the provision of financial resources outside the capital
cities and in rural areas.
Since the beginning of its operations in Kazakhstan in 1991 the EBRD has
signed 47 projects in the country and invested $1.3 billion. 70 per cent of
the Bank’s portfolio in the country is in the private sector.
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