News

The National Bank of Kyrgyzstan has reduced the size of the base rate from 14% to 13% due to lower inflation and commodity prices, according to an official statement on the regulator’s website.

This is the first time the country has decreased the base rate since May 2019.

The annual inflation in Kyrgyzstan in November reached 14.5%, a slight decrease compared to 15.4% in October. The regulator hopes that this slowdown of inflation processes will continue next year.

The National Bank is going to hold its next meeting over the size of the base rate on January 30, 2023.

Commodity...

Kazakhstan’s authorities have changed their approach to potential investors. The country is now going to provide them with 10-year residence permits, according to Tamara Duysenova, a minister of labor and social protection of the population. The official also noted that the visa threshold for investors is going to be $300,000 as the government has approved a new migration policy concept called Ashyk Kazakhstan 500+.

The new concept says that any investor who meets key requirements can live in Kazakhstan, register a business, own property, hire personnel, and make any kind of financial transactions associated with his business activity.

It is...

Iveta Dance, head of research, development and project management in SANTO told the Kursiv.media that thanks to its R&D center, the company is able not just to keep the leading position in the market, but also facilitate further development of the entire pharmaceutical industry in Kazakhstan.

SANTO is prone to support research and development activities. What does the company’s R&D division look like today?

Indeed, SANTO is not just the largest producer of pharmaceutical products in Kazakhstan and Central Asia, but also a leader in the field of drug research and development. The company’s R&D center is much bigger than...

Kazakhstan and Uzbekistan are going to ally with each other to stand against threats to the national security and sovereignty of either country. The draft of the agreement has been published and now is available for review.

The draft document says that the agreement reflects the new level of partnership between the two countries and is aimed at providing peace, stability and security in Central Asia.

In case of any external attack on one country, the other is obliged to take everything needed to halt the crisis. Also, Kazakhstan and Uzbekistan promise that they won’t participate in any alliance or...

Queen Rania of Jordan

When a picture of Queen Rania in Kazakh national dress went public several years ago, Kazakhstan’s media wrote (not a big surprise) that Her Majesty sparked a furor. To be fair, though, she always draws public attention whether she’s wearing jeans with a white shirt, which is an unusual look for any queen, or virtually traditional Muslim outfits. We are saying «virtually» because Rania made her position apparent many years ago. «There is no coercion in religion. I’ve made a decision not to wear a chador,» she said to a group of Western journalists...

Kazakhstan is going to reach carbon neutrality by 2060 and experts are trying to estimate the potential costs of such a transition. In November, the World Bank (WB) announced its assessment of this green transition in the country’s energy sector at $1.2 trillion.

Trillion for net zero emissions

The WB’s survey shows how the country can reach carbon neutrality and how much it would cost. The key sector of the national economy in Kazakhstan is energy, which accounts for 80% of all emissions in the country, according to the Ministry of Ecology, Geology and Natural Resources. As a...

Uzbekistan is going to double its uranium production to 7,100 tons by 2030. To achieve this ambitious goal, the country has already allowed its public company Navoiyuran to publish statistical data about uranium reserves and output with no limitations.

So far, the country’s official statistics don’t show any data about the quantity of uranium Uzbekistan had produced and sold. However, the country could have produced 3,500 tons of uranium last year, according to the World Nuclear Association.

All uranium produced in Uzbekistan is exported to big processing companies such as Orano (France), ConverDyn (the U.S.), Cameco (Canada) and CNEIC (China...

Kazakhstani cities with a population of more than one million people will be able to allocate money for the development of infrastructure in the suburban areas. It is expected that the same approach will be employed in smaller towns with a population of 500,000 people.

These proposals are part of the new legislation on the development of agglomerations that has been adopted by the country’s parliament. According to National Economy Minister Alibek Kuantyrov, big cities and different regions are going to cooperate to find better solutions for joint infrastructure development.

«In the city of Almaty, for example, there are territories...

According to the Center for Economic Research and Reforms (CERR), housing prices grew by 20% over the past ten months in Tashkent.

In October, the secondary housing market in the capital city of Uzbekistan grew by 4.6% compared to 1.7% in September. The average price for housing surged by 19.8% starting from the beginning of the year. Many experts believe the main reason for such growth is a large influx of foreigners. Between January to October, the local housing market showed 9.2% growth over the same period last year.

However, in terms of the entire country, the housing market showed...

Prime Minister Alikhan Smaillov revealed what the cabinet is going to do now that President Kassym-Jomart has been re-elected. The official said that they have seven years to realize what the president has promised to the people of Kazakhstan.

Smailov noted that the cabinet will focus on the de-monopolization of the economy, stimulating the spirit of entrepreneurship and income growth as well as modernization of the educational and healthcare systems.

He also underlined that the president wants the national economy of Kazakhstan, its social sphere and regional politics to go through a deep transformation. All public agencies and bodies have...

Health Minister of Kazakhstan Azhar Giniyat presented the new national project Modernization of Health Care in Rural Areas. The project will require $474.7 million from the state budget, according to the official.

Given that more than 50% of all primary health-care buildings are worn out, this money will help to improve this situation.

«We are cooperating with local authorities and have already prepared documents for 655 buildings for primary healthcare, including 253 first-aid posts, 160 outpatient clinics and 242 rural health posts,» said Giniyat.

Moreover, the government wants to organize 32 new multifunctional district hospitals.

It is expected that the...

According to the preliminary data from the Central Election Commission (CEC) of Kazakhstan, the current President Kassym-Jomart Tokayev won 6,466,392 votes (81.31%) during the presidential election yesterday November 20.

The column «against all» has been ranked second with 5.8% votes. All other candidates have shown much more modest results: Jiguli Dayrabayev – 3.42%, Karakat Abden – 2.60%, Meyram Kazhyken – 2.53%, Nurlan Auesbayev – 2.22% and Saltanat Tursynbekova – 2.12%.

The CEC noted that polling stations were open from 6:00 AM to 8:00 PM all over the country. The voter turnout reached 69.44%.

On November 20, Kazakhstan had to choose...

The European Union can benefit from deeper connections with Central Asia given the region’s potential in the sphere of energy, commodities and logistics, according to High Representative of the Union for Foreign Affairs and Security Policy Joseph Borrel.

The official believes that the E.U. needs new transport routes bypassing Russia.

«We must deepen our ties with the region and tap into the vast potential it has to offer, in terms of energy supplies, critical raw materials and new transport corridors that do not depend on Russia (to so-called Middle Corridor or Trans Caspian Corridor),» he wrote in his blog on...

Uzbekistan is expecting its budget deficit to be 4% of the national GDP this year. The country is going to decrease the rate to 3% next year. However, lowering the deficit may prove challenging given rising structural spending pressures and the desire to reduce taxes, according to the International Monetary Fund (IMF) mission that visited the country.

Inflation remains the most immediate threat to current and future prosperity by squeezing real incomes and undermining macroeconomic stability. Fiscal policy should continue to protect the most vulnerable through targeted support.

«However, other spending may well need to be curtailed further given risks...

The World Bank has improved Kazakhstan’s position in the 2022 GovTech Maturity Index (GTMI), which covers 198 countries, the bank’s press service reported.

The index reflects what countries have done in the area of GovTech: support of the key GovTech systems, improving public services, more active participation of citizens and facilitation for the development of overall digitalization.

In the GTMI 2022 update, Kazakhstan has been promoted to group A, which includes the leading countries in this sphere. Previously, Kazakhstan was in group B, which combines a group of countries focused on the development of the GovTech.

«The index reflects the...

Kazakhstan is going to borrow €345.7 million from the International Bank for Reconstruction and Development (IBRD). The Senate has already approved the relevant law.

According to Vice Prime Minister Erulan Zhamaubayev, all this money will be allocated to finance the country’s budget deficit.

«This loan will help us meet our obligations in terms of social and other budget expenditures. The repayment period is 11.5 years including a 2.5-year grace period,» he said to the Senate.

By taking this loan, Kazakhstan is obliged to pay an interest rate of 0.25% from the sum of the loan plus 0.25% of the commission...

McDonald’s is going to temporarily suspend its restaurants from operation in Kazakhstan starting from November 18, according to the press service of Food Solutions KZ, which represents the American food giant in Kazakhstan.

No details have been provided for when restaurants might be re-opened.

Food Solutions KZ has been operating in Kazakhstan for six years. The company runs 24 restaurants under the McDonald’s franchise brand in Almaty, Astana, Aktobe, Kostanay and Karaganda providing jobs for 2,000 Kazakhstanis.

Over six years of operation, the company paid more than $6.5 million in taxes.

However, Kazakhstan’s authorities earlier expressed their concern over the...

Kazakhstan’s Agency for Regulation and Development of Financial Market (ARDFM) has prepared a corporate environmental, social and governance (ESG) information disclosure handbook. The agency is expecting that the guideline will facilitate businesses to go through the process of switching over to ESG standards, according to Madina Abylkasova, head of ARDFM. 

On November 16, during a conference called ESG as a New Paradigm in the Financial Sector, she said that ESG projects could transform the entire economy of the country, with the financial sector playing a key role in this process.

«At the initial stage, we will implement rules for ESG...

According to CEO Magzum Mirzagaliyev, KazMunayGas oil company (KMG) is going to increase oil production at the Tengiz oil field by 40%. He made the statement while responding to questions on the company’s IPO set to happen later this year.

The company is now carefully reviewing a set of projects aimed at increasing oil output in the near future.

«Among these projects is the project of Future Growth Project-Wellhead Pressure Management Project (FGP-WPMP), which is capable of increasing oil output at Tengiz by 40%, and several smaller projects at Kashagan,» he said.

FGP-WPMP is a massive project aimed at increasing...

The Organization of the Petroleum Exporting Countries (OPEC) is expecting that liquid hydrocarbon output in Azerbaijan and Kazakhstan will decrease by 25,000 barrels a day in 2022 compared to 2021 and will then increase next year.

«According to the previous estimation of Kazakhstan’s Ministry of Energy, the oil output should have been fully restored by the end of October. However, as of October 21, the urgent repair work on the Caspian Pipeline Consortium oil terminal has not been conducted. No new deadlines for maintenance were announced either,» the OPEC report said.

As a result, the average oil output in Kazakhstan...

The Astana Financial Services Authority (AFSA), an independent regulator of financial services and related activities in the Astana International Financial Center (AIFC), has suspended the License of GB Finance Ltd. after the firm breached multiple AIFC Rules that are critical for companies to be able to carry on regulated activities.

According to the AFSA, the company breached some key rules in the field of currency regulation, minimum levels of capital adequacy ratios, limits on lending to related parties and limits on large exposures to counterparties. GB Finance also failed to advise the AFSA of the significant impact that certain acquisitions...

On November 7, more than one hundred dead seals were found on the Caspian Sea shore by local authorities. Seven days after Serikkali Brekeshev, minister of Ecology, Geology and Natural Resources announced that the reason for the incident is most likely hydrogen sulfide emission.

According to the official, there were 141 dead seals. The ministry has already established a special commission to investigate the incident.

«We took all necessary analyses and examined the bodies of those seals. Now we have to dispose of the bodies of dead seals. We will receive the results of these analyses in one month,» Brekeshev...

The Organization of Turkic States (OTS) needs to boost trade among member states. This goal might be achieved through the common space of new economic opportunities, according to President Shavkat Mirziyoyev of Uzbekistan. He made this statement during the OTS summit. 

«We need to strengthen the very basis of our trade and economic cooperation. Now this trade only accounts for 4% of the entire volume of trade in the OTS member states. Of course, none of us is happy with this situation. Moreover, our mutual trade is still limited by high customs duties,» said the president.

In order to improve...

The National Bank of Kazakhstan and the Payment and Financial Technologies Development Center have issued a notice about frauds linked to the digital tenge project, the regulator’s press service said. 

Often perpetrators create fake websites and pages in social media to attract those who are interested in the digital tenge project.

The National Bank urges people to ignore these online resources and avoid sharing personal data or contacts.

According to the regulator, the digital tenge project doesn’t attract money from individuals. The prime aim of the project is to create new opportunities for the national currency of Kazakhstan in the...