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According to a new report by Fitch, stronger lending regulation in Uzbekistan should mitigate overheating risks in the retail lending market and gradually improve banks’ loan book quality. Family business loans have led to large credit losses at some banks recently, the agency said.

Fitch experts believe that stricter regulatory control over retail loans introduced by Uzbek authorities is a response to rapid retail loan growth over the past several years. For instance, the country’s government has introduced maximum payment-to-income limits (60% maximum) on all retail loans; the initiative will enter into effect starting in July 2024. The rate...

Over the past six months, Kazakhstan issued about 500 licenses for geological exploration of solid minerals; 70 licenses were issued in May alone, according to Kanat Sharlapayev, minister of industry and construction.

«We have already introduced a decent order for obtaining exploration licenses. First come, first served. In May alone we issued 70 licenses for exploration. Over the past six months 500 licenses have been issued,» he said during the AMM 2024 forum.

As the official noted, investors’ interest in metal ore exploration in Kazakhstan is gradually growing. For instance, over the period from...

According to Beknur Nessipbayev, head of Astana Motors, one of the biggest car companies in Kazakhstan, a big war in the auto market is coming, driven by an influx of newcomers. He shared this opinion during the Kursiv Auto 2024 forum held in Almaty on June 10.

«There are so many new businesses trying to enter the market. We know that about 15 more automotive brands from China want to sell their cars in Kazakhstan. We are going to bump into a big war in the market. I mean, we can already feel this. We are...

Tourists came to Almaty from Paris intending to illegally penetrate the territory of the Baikonur Cosmodrome. As a result, one of them has died because of dehydration in the steppe, according to the RIA Novosti, citing a source familiar with the matter.

«Two French citizens were trying to illegally trespass the cosmodrome territory. They chose the so-called classic route which means they went from the highway toward high buildings they saw by foot across the steppe. One of the tourists got sick on the way,» the source told the media outlet.

As the 112 Channel...

Samsung C&T Corporation from South Korea wants to build renewable energy sources in Kazakhstan, the press service of Kazakh Invest reported after Gabidulla Ospankulov, chair of the Investment Committee of the Ministry of Foreign Affairs, met with Seung-Chan Jung, managing director of Samsung C&T Corporation in Central and Western Europe.

«Representatives of Samsung C&T corporation have confirmed they are eager to implement a set of projects in the sphere of renewable energy and its storage with the help of solar energy and batteries specially designed for that purpose,» the press service said.

South Korean investors...

Ex-head of the National Security Committee of Kazakhstan (KNB) Karim Massimov, serving his 18-year sentence for treason and attempting a coup, has written to the president of Kazakhstan asking for a pardon, according to Informburo.kz.

«In March 2024, he (Karim Massimov) sent a petition asking the president of Kazakhstan for a pardon,» the KNB told the media outlet.

The law enforcement agency also said it is investigating two more pre-trial cases against Massimov, who is also accused of laundering money or other property obtained by illegal means and taking especially large bribes.

In April...

Ex-minister of Digital Development, Innovations and Aerospace Industry Bagdat Musin is set to be the new chair of Kazakhtelecom, the KazTag news agency reported, citing people familiar with the matter.

As the media outlet reported, Musin will replace Kuanyshbek Yesekeyev, appointed as an adviser to President Kassym-Jomart Tokayev on June 10. Kursiv has already requested Kazakhtelecom to comment on the staff changes.

Musin served as a digital minister from September 2020 to April 2024. He had also worked as a deputy minister for three months before being appointed minister. Over his career, he worked as the chairman of Kazpost, National...

Nariman Bekturov, head of marketing and client service in JAC Motors Qazaqstan revealed the reason Chinese cars have flooded the Kazakhstani market.

«There was a lack of supply as many budget models and brands left our market. Of course, the Chinese saw those empty niches and occupied them. Why? Because their cars are more affordable. Furthermore, they produce quite good vehicles that offer nearly the same level of comfort as many more expensive cars,» Bekturov said during a speech at the Kursiv Auto 2024 forum in Almaty.

As he noted, Chinese automakers often offer various...

Freedom Capital Markets (FCM), an investment and banking subdivision of Prime Executions, Inc. (a subsidiary of Freedom Holding Corp.), has appointed Edward Maguire as its new senior managing director of the U.S. equities research team. According to the company’s press release, McGuire previously worked at SMBC Nikko Securities America.

FCM believes that Maguire’s extensive experience will help implement the company’s global strategy and promote further growth. In particular, he is expected to enhance and expand customer service offerings in U.S. equities, sales and trading.

Maguire has been working in equity research, banking and finance for 30 years. Before joining SMBC...

The United States has imposed sanctions on several dozen citizens of Georgia, including multiple MPs, for “undermining democracy” and the brutal crackdown on peaceful protesters. This move followed the adoption of the foreign agent law by Georgian authorities, The Associated Press reported.

The U.S. has introduced visa restrictions against Georgian citizens deemed involved in human rights violations and undermining democracy in the country.

Even though Matthew Miller, the official spokesperson for the U.S. Department of State, didn’t reveal any names, the sanctions list may include 20 to 30 officials, deputies from the ruling party Georgian Dream (the initiator of the...

Two Kazakhstani companies, KTZ Express and QazTrade, in conjunction with the National Logistics Corporation (NLC), a logistical operator from Pakistan, have conducted a pilot intermodal shipment to the Jebel Ali Port in the UAE via Afghanistan and Pakistan.

According to Kazakhstan Railways, the cargo shipment from the «Pavlodar» special economic zone to the endpoint of the route took 38 days. The pilot project began by loading two 21-ton trucks, which then departed for the Zhetygen Transport Logistical Center, where the freight was reloaded into two 40-foot containers set up on trucks. The trucks then proceeded to the Karachi Port in...

Kazakhstan has signed contracts with Gazprom to allow the export of Russian gas to Uzbekistan and Kyrgyzstan via Kazakhstan. The signing ceremony was held during the St. Petersburg International Economic Forum, according to Interfax Kazakhstan.

The two sides – Alexey Miller, the chair of the board of directors of Gazprom and Roman Sklyar, the first vice prime minister of Kazakhstan – have signed two documents: the first one was a plan aimed at boosting Russian gas export to Uzbekistan via the Central Asia – Center gas pipeline; the second was a contract on the export of Russian gas to northern...

According to Vice Prime Minister Serik Zhumangarin, Kazakhstan does not support the sanctions imposed by Western nations against Russia but has to adhere to them due to economic reasons.

«Of course, these sanctions bother us as well. Many logistical and supply chains have been torn apart because of this. We are not part of the anti-Russian coalition and do not support unilateral sanction policies, but we are going to continue to comply with these sanctions because it is in our interest. We are a small economy and won’t endure sanction pressure,» the official said.

He...

Glencore Plc, a Swiss multinational commodity trading and mining company, is weighing selling its 70% stake in Kazzinc, a big mining company in Kazakhstan, to unidentified investors from China, the Bloomberg news agency reported, citing its sources familiar with the issue.

Glencore is also trying to sell the Vasilkovskoye gold field, operating by Kazzinc. The company already tried to sell the asset more than seven years ago but the deal was canceled back then, according to the media outlet.

«The gold mine and Kazzinc’s core zinc operations could be sold to separate buyers or a...

According to Prime Minister Olzhas Bektenov, the government of Kazakhstan has allocated $29.6 million for geological research in 2024-2026.

«In order to cover two million square meters with geological research in 2024-2026, $29.6 million has been allocated from the state budget ($18 million in 2024, $5.7 million in 2025 and $5.7 million in 2026),» Bektenov said.

Furthermore, the government is considering allocating an additional $82.5 million for subsoil exploration at 18 perspective fields by 2026: $21.6 million in 2024, $35.5 million in 2025 and $25.4 million in 2026.

Interestingly enough the government of Kazakhstan is...

According to the General Prosecutor’s Office of Kazakhstan, since 2022, authorities have seized about $3.7 billion of illegally withdrawn assets; $750 million were reclaimed from abroad. Furthermore, the government has already prepared lawsuits to claim an additional $725 million.

«The General Prosecutor’s Office is analyzing data on more than 1,000 pieces of property in Kazakhstan and more than 150 assets abroad. About $1.3 billion worth of stocks have been analyzed as well. We’ve found more than 200 banking accounts within the country and 140 abroad. There are suspicious transactions amounting to around $4.4 billion under rigorous...

In April 2024, global central banks acquired 33 tons of gold, almost a twofold increase from 16 tons in March. Kazakhstan has become the second biggest gold purchaser in the world after Turkey, according to the World Gold Council (WGC).

The Central Bank of Turkey boosted its gold reserves by 8 tons. Kazakhstan and the Reserve Bank of India both acquired 6 tons of gold, sharing second place after Turkey. They were followed by the National Bank of Poland (5 tons), the Monetary Authority of Singapore (4 tons), the Central Bank of Russia (3 tons), and the Czech National Bank...

An International Monetary Fund (IMF) mission visited Kazakhstan in late May. Head of the mission Nicolas Blanchet has summarized the results of the visit in a statement reviewing the current economic situation in the country and has given some recommendations on behalf of the international organization.

According to Blanchet, even though Kazakhstan’s economy and financial sector have remained resilient, downside risks to the outlook are substantial, particularly external risks:

Kazakhstan fully supports the United States in its effort to stabilize the situation in the Middle East and hopes that bloodshed will stop soon, according to the country’s foreign ministry.

«We are hailing a peaceful initiative by the White House aimed at cease-fire between Israel and Hamas, the release of hostages, free flow of humanitarian aid and the restoration of the Gaza Strip with the help of the international community,» the ministry said in a statement.

The agency has also expressed hope that the initiative would stop the bloodshed, save civilians and create conditions for...

KMF, the biggest microfinance organization (MFO) in Kazakhstan, has changed its form of ownership, transforming itself into a joint stock company. Previously, it operated as a limited liability company.

No changes for creditors, customers or partners are expected, though. Moreover, neither corporate details of the company nor its headquarters location will change, the legal entity said in a statement.

«This is a pivotal moment for our company. We’ve pursued this transformation into a joint stock company persistently and consistently. This move has a great symbolic meaning for us because it shows our determination and commitment to...

Kairat Kelimbetov, a former head of the Astana International Financial Center (AIFC) from 2015 to 2023, has joined the board of directors of Freedom Holding Corp., the company said in a statement.

«Freedom Holding Corp. is confirming that the board of directors has been expanded to seven people. There are three new independent directors: Andrew Gamble, Philippe Vogeleer and Kairat Kelimbetov,» the holding reported.

The company has also created a new position of chief legal officer. Jason Kerr, a former member of the board of directors, has been appointed to the new position. He is...

The Ministry of Finance of Kazakhstan will borrow $1.9 billion in the open market in June to cover the deficit of the state budget. This is a 53% increase over May when the government issued bonds for $1.2 billion, according to the Association of the Financiers of Kazakhstan (AFK), citing official data published at the Kazakhstan Stock Exchange (KASE).

Most of the offerings in June will include bonds with a maturity of one year, three years, five years and six years for $225 million each. An additional $202 million will be raised with the help of eight-year maturity bonds and...

Inflation in Kazakhstan noticeably declined in April and may slow to 8% by year-end, according to analysts from the International Monetary Fund, who visited Kazakhstan in May as part of the fund’s mission. They also emphasized that the National Bank’s monetary policy is crucial in managing inflation and achieving the target rate.

On June 3, the Bureau of National Statistics published data showing that annual inflation in Kazakhstan slipped by 0.2 percentage points (p.p.) to 8.5%. The same trend was reported month-on-month, with prices rising by 0.4%, while the National Bank lowered the base rate by 0.25 p.p. to 14.5%.

According to Roman Sklyar, the first deputy prime minister of Kazakhstan, the country’s government will allocate $14 million for the evaluation of the subsoil potential of the Aral Sea area.

In particular, the funds will be spent on geological and geophysical exploration of the Zapadnyi and Vostochnyi fields. Once this work is completed later this year, the government will comprehensively review resources deposited in the area and determine the most prospective structures.

Furthermore, many independent subsoil users do the same job independently, exploring the former seabed of the Aral Sea in a bid to find something promising enough.

What can...