Category Archives: Uncategorised

China’s CITIC Bank buys 60% stake in Kazakhstan’s Altyn Bank

ALMATY, NOV. 4 2016 (The Conway Bulletin) — Halyk Bank, one of Kazakhstan’s biggest lenders, said it will sell a 60% stake in its subsidiary, Altyn Bank, to China’s CITIC Bank at the start of next year, China’s most significant investment in the Kazakh banking sector.

The parties did not disclose the cost of the transaction, but experts believe it could be around $300m.

“The valuation of Altyn’s current assets as of September 30 is 316b tenge ($929m) and we can expect an increase in the bank’s activity in Q4. After premiums and non-performing loans discounts, the final figure could be around $300m,” Rasul Rysmambetov, director of the Public Fund Financial Freedom, told the Kursiv newspaper.

Altyn Bank is the successor of HSBC Kazakhstan that Halyk Bank bought in March 2014 for $176m.

China already owns Bank of China in Kazakhstan and Industrial and Commercial Bank of China in Almaty, two small-sized lenders founded in 1993. Owning Altyn Bank will boost its presence and could help the bank grow trade with China.

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(News report from Issue No. 304, published on Nov. 11 2016)

Turkish cuts flights to Tajik and Kyrgyz cities

NOV. 8 2016 (The Conway Bulletin) — Turkish Airlines, Turkey’s flagship carrier, dropped Osh, Kyrgyzstan’s second-largest city, and Khujand, a major city in northern Tajikistan, as destinations in a global revision of its connections. Turkish said it was suspending flights to 22 destinations and making around 30 aircrafts redundant in an effort to focus only on profitable routes.

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(News report from Issue No. 304, published on Nov. 11 2016)

Kazakhstan to subsidise mortgages

ALMATY, NOV. 8 2016 (The Conway Bulletin) — The Kazakh government will gives subsidies of 15m tenge ($43,455) to mortgages for new homes, Marat Idryshev, head of the Association of Kazakh Constructors said, part of President Nursultan Nazarbayev’s plan to breathe life into Kazakhstan’s flatlining economy.

Mr Nazarbayev announced the Nurly Zher programme in September, the name means Bright Land in Kazakh, a few months after a series of unprecedented anti- government protests focused on mortgages and land ownership showed just how frustrated ordinary Kazakhs were with the state of the economy.

Precise details of the $1.3b plan to re-energise Kazakhstan’s construction sector have been thin, so Mr Idryshev’s comments are important. He said that the mortgage market was severely undernourished in Kazakhstan.

“Today the proportion of mortgages given by commercial banks in Kazakhstan is no higher than 5%,” he told media. “In Russia it is 50-70%, a world standard. We will act in accordance with the experience of our neighbours. The government will subsidise mortgages.”

The subsidy should, Mr Idtzhev said, bring interest on mortgages down to around 10% from 17%.

The collapse of the tenge last year made it difficult for mortgage holders to pay back their loans. Almaty-based economist Zharas Akhmetov said the plan should dampen growing tension.

“This, firstly, will support the housing market. Secondly, this will remove tension in society,” he told the Bulletin. “One of the drivers of economic growth is construction, and not only construction of houses but also roads and industrial objects.”

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(News report from Issue No. 304, published on Nov. 11 2016)

Georgia’s defence minister to return conscription

NOV. 7 2016 (The Conway Bulletin) — Georgia’s new defence minister, Levan Izoria, has said that he may reverse a decision by his predecessor to scrap military conscription next year, media reported. Georgia announced in June that it was going to scrap conscription, part of a drive to professionalise its military. It wants to join NATO and has sent its forces to Afghanistan and Iraq. By regional standards, Georgia’s army already looks and feels like a Western army. Only non- combat roles are filled with conscripts. Media reported that Mr Izoria had said that conscription was useful in helping ethnic minorities integrate.

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(News report from Issue No. 304, published on Nov. 11 2016)

Uzbeks mourn their great leader Karimov

SAMARKAND/Uzbekistan, NOV. 11 2016 (The Conway Bulletin) — Davlat, 33, was standing looking almost dreamily at Islam Karimov’s mausoleum. “I wish he’s ruled for another ten years,” he said.

In the West, Karimov, who ruled Uzbekistan from the collapse of the Soviet Union in 1991, is considered a brutal dictator who ordered his soldiers to shoot his own people. In Uzbekistan, though, ordinary people pay homage to his foresight and magnanimity.

A long line of people were queuing up at the end of last month to pay their respects to Karimov.

The authorities had decided to bury him in Samarkand, where he was born and his mausoleum, like the other grand mausoleums in Uzbekistan’s most famous and most written about city, will gradually become another tourist site.

The Registan, a square in front of three madrassas, is a short walk away. It is the city’s most popular tourist site. It is also where Farkhod, 55, earns a living directing tourists.

“I remember days, when we used to get products like flour and bread only from food cards and now there is nothing that we do not produce ourselves. Cotton, wheat, machines,” he said.

“This is all thanks to Islam Karimov. May his soul rest in peace.”

Back in Tashkent, Bobor smiled when he thought of Karimov.

“I won a golden medal in boxing in 2006 and the President gave me this car,” he said proudly. Although it is now old and problematic, he said that he wouldn’t dream of selling it.

Most ordinary Uzbeks have their own stories of Karimov, focused on his image as a great leader and saviour.

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(News report from Issue No. 304, published on Nov. 11 2016)

WHO says Kyrgyzstan is free of malaria

NOV. 11 2016 (The Conway Bulletin) — >> I’ve just read that the World Health Organisation (WHO) has declared Kyrgyzstan to be free of malaria. Is this important? What does this mean?

>>Put simply, it means that Kyrgyzstan has done a good job at stamping out malaria. To be declared free of malaria, a country has to prove that there have been no cases for three consecutive years. It’s good PR for Kyrgyzstan and should make it a more attractive destination for tourists to visit. It’s an image thing. Malaria was never a major problem in Kyrgyzstan but publicity from WHO about combating it will go down well.

>> Got it. You say that it wasn’t a major problem but how serious was malaria in Kyrgyzstan, then?

>> It had been more or less stamped out under the Soviet Union, mainly due to industrialisation and living standards rising, but it re-appeared in the 1990s. This was a tough period, after the collapse of the Soviet Union, with the economy performing badly. There were very few jobs in Kyrgyzstan and healthcare was underfunded. Migrant workers brought malaria back to Kyrgyzstan and in 2002, it suffered what the WHO described as a “malaria epidemic” with 2,700 reported cases. Backed by the WHO, the Kyrgyz government ran a malaria eradication strategy which targeted improving healthcare and strengthening awareness of the disease. By 2011, the number of malaria cases reported to have been picked up in Kyrgyzstan was three, dropping to zero in 2012. The campaign has been a success.

>> Does this all mean that Kyrgyzstan has become something of a WHO poster-boy in Central Asia?

>>Not exactly. It still has plenty of issues to deal with such as high rates of alcohol consumption and smoking, as well as HIV and tuberculosis problems. These issues are generally shared with other countries in the former Soviet Union. Public health in the region is always going to be a continual battle.

>> And what about the other countries in the region?

>> Kazakhstan has also been declared malaria-free and the number of cases in Uzbekistan and Tajikistan has fallen dramatically. Both are on course to achieving the WHO’s malaria-free certificate. For Tajikistan, in particular, this would be a major achievement. At its peak in 1997, Tajikistan reported nearly 30,000 new cases of malaria. Last year it reported zero cases and the WHO has said that it is on course to achieve malaria-free status. This is a good news story from Central Asia. Eradicating malaria will save lives and take the strain off the health sector. Of course, it may reappear but for now, malaria is being defeated in the region. The WHO has no data for Turkmenistan.

>> That’s impressive. So, is it all good news for Central Asia’s healthcare system?

>> No. While malaria may be being beaten, other diseases are still a problem. Kazakhstan reports seasonal outbreaks of the bubonic plague. These are localised and transmitted by fleas living off infected rodents. One or two people die each year from the disease but it has never threatened to become widespread. In Tajikistan, polio, which was thought to have been eradicated, was reported in the south of the country in 2011. In total, nearly 500 people were reported to be infected and the WHO declared an epidemic. At least 29 people died before the outbreak was brought under control six months later. In Kyrgyzstan, also, there have been recent public health scares. This included an outbreak of measles in 2015. Out of 22,000 recorded in the wider Europe region that year, a third were in Kyrgyzstan

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(News report from Issue No. 304, published on Nov. 11 2016)

Kazakh President heads to Asia

NOV. 7/11 2016 (The Conway Bulletin) — Kazakh President Nursultan Nazarbayev flew to Japan and South Korea on a tour of East Asian countries aimed at drumming up business. Both Japanese and South Korean companies own stakes in energy and industrial projects in Kazakhstan. Korea has particularly strong links with Kazakhstan and other countries in Central Asia.

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(News report from Issue No. 304, published on Nov. 11 2016)

Three miners die in central Kazakhstan

NOV. 10 2016 (The Conway Bulletin) — Three miners died in Karaganda, central Kazakhstan, after a monorail accident at the Saranskaya mine, local media reported. Five other workers were injured, one critically. Steelmaker ArcelorMittal Temirtau owns the Saranskaya mine and said it will investigate the accident.

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(News report from Issue No. 304, published on Nov. 11 2016)

Tajikistan bans newspaper

NOV. 4 2016 (The Conway Bulletin) — The Tajik Indem think tank suspended the print edition of its Nigoh newspaper under pressure from the authorities. The independent media scene has shrunk in Tajikistan in recent years. Nigoh was known for its support of the now banned Islamic Renaissance Party of Tajikistan.

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(News report from Issue No. 304, published on Nov. 11 2016)

Georgia and Armenia unveil border crossing

NOV. 4 2016 (The Conway Bulletin) — Armenia and Georgia unveiled a new border crossing at Bagratashen and renewed vows to boost bilateral cooperation. At the inauguration ceremony, Georgian PM Giorgi Kvirikashvili met Armenian President Serzh Sargsyan and stressed the importance of improved regional cooperation.

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(News report from Issue No. 304, published on Nov. 11 2016)