Tag Archives: Kazakhstan

Massimov returns as Kazakhstan’s PM

APRIL 2 2014 (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev re-shuffled his government, bringing back Karim Massimov as PM.

Nurlan Nigmatulin, formerly the Nur Otan head in parliament, was promoted to replace Mr Massimov as head of the presidential administration.

Mr Nazarbayev also gave his eldest daughter Dariga Nazarbayeva a boost by promoting her to head Nur Otan in parliament. Nur Otan is Mr Nazarbayev’s political party.

The re-emergence of Mr Massimov, who had been PM between 2007 and 2012, and the promotion of Ms Nazarbayeva set off speculation over who would eventually succeed Mr Nazarbayev.

Ms Nazarbayeva, 50, has enjoyed a resurgence back into public life after winning a seat in parliament in 2012. Until 2007 she had been prominent but fell from grace when her then husband, Rakhat Aliyev, argued with her father and then fled abroad.

Both Ms Nazarbayeva and Mr Massimov are among the favourites to succeed Mr Nazarbayev when he finally steps aside.

ENDS
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(News report from Issue No. 179, published on April 9 2014)

Kazakhstan’s police arrests Kazatomprom executive

APRIL 1 2014 (The Conway Bulletin) — Kazakh police arrested Valery Shevelyov, a director at Kazakh nuclear agency Kazatomprom, and his deputy, Serik Abdrazakov, for corruption. In 2009, Kazakhstan jailed Mukhtar Dzhakishev, then head of Kazatomprom and an opposition figurehead, for 14 years for corruption.

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(News report from Issue No. 178, published on April 2 2014)

Hard cash still rules in Kazakhstan

MARCH 27 2014 (The Conway Bulletin) — Although electronic transactions are growing, Kazakhstan is still a predominantly cash-based society, analysis has shown.

Last year the number of credit and debit cards in circulation grew by 20% in Kazakhstan but the amount of electronic transactions by only 9%.

It feels as if consumers in Kazakhstan still have a mental aversion to using cashless payment models.

Payday for government workers in Kazakhstan is on the 10th day of each month. That’s when the tell-tale queues of people converting their electronic salaries into hard cash form outside branches of Halyk Bank.

It’s also a symbolic illustration of the problem that the Kazakh Central Bank needs to address.

Switching to a more cashless society is important as it is a mark of development. An increased number of electronic transactions in an economy also means that more taxes are paid and the financial system is, generally, more robust.

Alisher, a worker at Eurasia Bank in Almaty, puzzled over the problem.

“Our cards do not carry charges for electronic payments, yet customers refrain from using them,” he said. “Instead they pay withdrawal fees or simply forget that the piece of plastic they are carrying in their wallet is actually an instrument that could save them money and time.”

The problem, though, is not purely the mentality of the consumers. Many shops in Kazakhstan still do not have the right equipment. This is changing, though, and from July 1, new laws will mean that all shops will have to carry card reading machines.

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(News report from Issue No. 178, published on April 2 2014)

Fitch says Kazakhstan’s bad loans will increase

APRIL 1 2014 (The Conway Bulletin) — The 20% devaluation of the tenge earlier this year will trigger an increase in bad debt, Roman Kornev, director of financial institutions at Fitch Ratings said. The Kazakh government wants to reduce the amount of non-performing loans on banks’ portfolios.

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(News report from Issue No. 178, published on April 2 2014)

Government spending grows in Kazakhstan

MARCH 26 2014 (The Conway Bulletin) — Kazakhstan’s parliament approved increased government spending to compensate people for the 20% drop in the value of the tenge and counter rising inflation.

Overall, Kazakh government expenditure will increase by 6% to $39.1b.

The increase is more evidence of the inflationary effect of the currency devaluation on Feb. 19. Shops have increased their prices and large corporations have boosted salaries.

To calm public frustration, Kazakh president Nursultan Nazarbayev promised to increase pensions, public sector salaries and student grants. Parliament’s decision to increase government spending is simply making good on these promises.

The Kazakh government will fund the budget increase by transferring cash from the National Fund, where it keeps profits from oil revenues.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 178, published on April 2 2014)

Russian rocket crashes in Kazakhstan

MARCH 28 2014 (The Conway Bulletin) — A Russian weather rocket crashed near a village in western Kazakhstan, media reported. There were no casualties. The Kazakh authorities banned further Russian rocket launches over its territory.

(News report from Issue No. 178, published on April 2 2014)

Flood kills five in Kazakhstan

APRIL 1 2014 (The Conway Bulletin) — A dam in central Kazakhstan burst, flooding downstream villages and killing five people. The accident underlines the need to improve Kazakhstan’s Soviet built infrastructure.

(News report from Issue No. 178, published on April 2 2014)

Kazakhstan increases pipeline exports

APRIL 1 2014 (The Conway Bulletin) — Oil exports via the Caspian Pipeline Consortium (CPC) that runs from Atyrau in western Kazakhstan, north of the Caspian Sea into Russia and on to the Black Sea port of Novorossiisk expanded by 24% in March from a year earlier after a successful capacity upgrade.

(News report from Issue No. 178, published on April 2 2014)

Kazakhstan expects tests for Kashagan

MARCH 27 2014 (The Conway Bulletin) — The results of tests into gas pipeline leaks at the Kashagan oil project in the Kazakh sector of the Caspian Sea are expected in April, Reuters quoted a Kashagan spokesman as saying. Kashagan shut down in October, shortly after it opened, frustrating the government.

(News report from Issue No. 178, published on April 2 2014)

Kazakhstan’s Halyk Bank posts profits

MARCH 25 2014 (The Conway Bulletin) — Halyk Bank, Kazakhstan’s second largest lender, said net profit rose by 3.5% to $398m in 2013, good news for the Kazakh finance sector. Importantly, also, Halyk Bank said the ratio of so-called non-performing loans had reduced slightly.

(News report from Issue No. 177, published on March 26 2014)