Discover Qazaqstan via News and Inspiring Stories

QazMonitor Logo
Facebook Qazmonitor iconInstagram Qazmonitor iconTiktok Qazmonitor iconTwitter Qazmonitor iconTelegram Qazmonitor iconYoutube Qazmonitor icon
  1. Main Page
  2. News
  3. Tokayev: Country Should Attract Three Reputable Foreign Banks
Astana, Kazakhstan • 01 September, 2023 | 12:36

Tokayev: Country Should Attract Three Reputable Foreign Banks

The President demanded a radical solution to the problem of insufficient corporate lending

QazMonitor Logo
akorda.kz
akorda.kz

President Kassym-Jomart Tokayev proposed to attract three reliable foreign banks to Kazakhstan during his annual Address to the People of Kazakhstan, QazMonitor reports.

"To expand access to 'long-term funding' for the real sector, it is necessary to actively employ mechanisms of joint and syndicated lending. However, it's important to note that industrialists and entrepreneurs should not act as mere 'credit vacuums'; they are expected to present quality projects that will genuinely diversify our economy," the President noted.

To bolster the interest of commercial banks, the possibility of offering them guarantees from development institutions when financing priority projects should be considered, the Head of State emphasized.

Another issue in the banking sector is its high concentration. Presently, there are 21 banks operating in the country. However, only a few major banks are involved in corporate lending, which is the financing of economic projects. 

Kassym-Jomart Tokayev

Therefore, to enhance competition in this sector, Tokayev has instructed to attract three reputable foreign banks to the country.

The President called for a decisive resolution to the problem of inadequate corporate lending.

The economy requires financial resources. The net profit of banks for the previous year amounted to almost one and a half trillion tenge, and for the first half of this year, it exceeded a trillion tenge. This exceptional profitability is not solely a result of efficient bank operations but is mainly a consequence of the high base rate set by the National Bank to combat inflation. The Government and Parliament should contemplate a more equitable redistribution of these profits, taking into account the state's interests.

the President stated
Only 30% of an article published on The Qazaqstan Monitor website may be used with a mandatory hyperlink provided to indicate the original source. To re-publish the full article, written permission from the editorial is required.