Kazakh parliament concerned about lack of long money for business

ASTANA (TCA) — The current deficit of tenge liquidity and lack of credit resources in the national currency was the subject of the Kazakh parliament’s address to Prime Minister Karim Masimov and National Bank Chairman Daniyar Akishev, the Atameken National Chamber of Entrepreneurs of Kazakhstan reported on April 13.

In its address the parliamentary faction of the ruling Ak Zhol party emphasized that high interest rates of some categories of loans make any industrial activity unprofitable and push business away from the production sector toward resale of goods.

The MPs believe that banks in Kazakhstan have short-term tenge liquidity not due to changes in the banking system but due to the huge financial and regulatory support provided by the state.

“But short-term liquidity does not provide investment loans and development of industrial projects for the industrialization and diversification of the economy,” the address said.

The MPs asked the heads of the Government and National Bank to inform about plans to provide business with long-term credit resources.

The parliament deputies also inquired about “steps the Government and the National Bank are going to take for decision-making on the reform of the banking and financial system to make it adequate to the new economic reality”.

The MPs recommended not relying so much on state support but rather on internal resources and on improving the efficiency of the banks and financial institutions.

Sergey Kwan