UAPF and National Bank to finance economy's priority sectors
The funds will reach the second-tier banks on a recoupment basis at the commercial and market rates, the Minister says.
In order to meet the President's instruction to provide to the National Bank to the economy's priority spheres, half of 600 billion tenges will be provided to the second-tier banks from the Unified Accumulative Pension Fund (UAPF). It was said by Finance Minister Alikhan Smailov, BNews.kz correspondent reports.
"It would be better to address this question to the National Bank. And, I, being the Finance Minister, acquire the information that the National Bank plans to allocate half of the sum at the expense of the UAPF, another half will be provided at the expense of the National Bank. The funds will reach the second-tier banks on a recoupment basis at the commercial and market rates. They will be allocated to the priority sectors of the economy, as the head of state said. Now we need to establish a mechanism to control over the targeted use of the funds on the directions and projects which are a priority for our economy," said the Finance Minister on the sidelines of a presentation of budgetary amendments in the Majilis.
He noted that at the market rates, the savings of the Pension Fund should be invested and make a profit so the UAPF's assets grow.
"So, the funds should be invested. In this case, it is about investment in our economy at the market rates. Therefore, it is normal, and all country did and do it, they invest in their economies at the market rates, thus, firstly, accumulating the main savings bulk, as well as increasing investment components," said Alikhan Smailov.
We note in his Address President Nursultan Nazarbayev instructed the National Bank to provide early tenge liquidity to the banks not less than 600 billion tenges to provide affordable credits to priority projects.