Kazakhstan’s external debt for the past 10 years increased by $74.5bn - News | BNews

Kazakhstan’s external debt for the past 10 years increased by $74.5bn

15 February, 13:07 280
Kazakhstan’s external debt for the past 10 years increased by $74.5bn

The growth of external debt happened due to the increase in intercompany debt, related, mainly, to the implementation of oil and gas projects.

Kazakhstan's external debt for the past 10 years increased by 74.6 billion dollars, amounting to 168.9 billion dollars on October 1, 2017, says the press service of the National Bank of the Republic.

"The growth of external debt happened due to an increase in intercompany debt (+76.7 billion dollars), related mainly to the implementation of oil and gas projects by branches of foreign companies in the country, as well as an increase in the external debt of the non-financial sector of the economy (+26.2 billion dollars) and the government (+10.8 billion dollars) in connection with the issue of Eurobonds and the attraction of credits and loans," says the Thursday’s statement.

It is pointed out that the external liabilities of the National Bank remained almost unchanged, averaging 0.6% of the country's external debt.

"The external debt of the financial sector decreased by 39.1 billion dollars, mainly due to a reduction in the arrears of the banking sector (including the Development Bank of Kazakhstan) for loans and borrowings by 37.4 billion dollars, a decrease due to the mechanism of minimum reserve requirements, prudential standards, the rule of sufficient capitalization," notes the information.

In accordance with the legislation, the competence of the National Bank includes the formation of statistics on the external debt of the country and participation in the regulation of external debt of financial organizations. "Regulation of the volume of external debt of other sectors of the economy, including intercompany debt, is possible only by indirect measures, since the civil legislation of the Republic of Kazakhstan provides for freedom of decision-making, including when conducting business activities by residents," says the press release.

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