Tag Archives: Kazakhstan

Kazakh C.Bank loans Delta $31m

MARCH 7 2017 (The Conway Bulletin) — As part of its well-publicised plan to help its struggling banking sector, the Kazakh Central Bank said that it had loaned Delta Bank, one of the smaller banks in Kazakhstan, 9.8b tenge ($31m), media reported. The loan, made on March 3, was linked to a missed coupon repayment that Delta Bank had needed to pay. This was connected to pension obligations.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Rio-Tinto is planning investments in Kazakhstan, says official

MARCH 9 2017 (The Conway Bulletin) — After a meeting with two senior officials from Rio Tinto at a trade fair in Toronto, Kazakhstan’s deputy minister for investment development, Timur Toktabayev, said that the mining company planned a couple of significant investments in the country. The British-Australian company is one of the biggest miners in the world but doesn’t currently have any projects in Kazakhstan. If it did start work on a project in Kazakhstan, it would give the country a major PR boost.

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(News report from Issue No. 320, published on March 13 2017)

Kazakh company to invest in Yurt tourism

MARCH 10 2017 (The Conway Bulletin) — Baiterek Travel Center, a government-linked tourist development company, plans to invest around $2.8m building a yurt camp resort in the Zhambyl region of southern Kazakhstan, the Interfax news agency reported by quoting a source at the regional chamber of entrepreneurs. Kazakhstan has been looking to boost tourism numbers. Since 2014 it has scrapped visa requirements for visitors from dozens of Western countries.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Kazakh bank posts improving results

MARCH 10 2017 (The Conway Bulletin) — Halyk Bank, Kazakhstan’s second largest bank by assets, said its net income in 2016 was 9.2% higher than in 2015 at 131.2b tenge ($412m). Importantly, its Q4 net income was 32% higher in 2016 than the same period in 2015 and the proportion of loans considered to be bad, those more than 90 days overdue, had dropped to 10.2% by Dec. 31, from 11.5 % on Sept. 30. The data suggested that the economic downturn that has hit Kazakhstan is lifting. Last week, Halyk Bank confirmed it would merge with Kazkommertsbank.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Kazakhstan to host another round of Syria talks

MARCH 9 2017 (The Conway Bulletin) — Kazakhstan’s foreign ministry confirmed that Astana would host another round of talks aimed at ending a civil war in Syria on March 14/15. This is the third round of talks in Astana this year, lead by Russia, Iran and Turkey. Delegates representing both Syrian president Bashar al-Assad and Syrian rebels are expected to attend. The US has only previously participated as an observer.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Stock market: Brent

MARCH 8 2017 (The Conway Bulletin) — Governments across the Central Asia/South Caucasus region will be nervously watching the Brent spot price as it slips back down to that all-important $50/barrel level. This is the psychological breakpoint.

If Brent oil dips below $50/barrel, national budgets, which have just been adjusted upwards, will have to be rethought. It broke through this level in mid-December and had hovered around the $55/barrel mark since then, before taking a downturn.

Oil prices had been pushed up in mid-December by a plan lead by producers to cut output. Data, though, this week showed that crude oil stocks held by the US government have risen, raising concerns that the fragile coalition patched together to contain global production was cracking. Data from Saudi Arabia, Iraq and Nigeria also suggested that production was rising again.

Kazakhstan’s output estimate has also been increased. The US Energy Information Administration (EIA) said Kazakhstan would produce 1.88m barrels of oil/day in 2017, compared to an earlier estimate of 1.86m barrels/day. In 2016, it produced 1.73m barrels of oil/day.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Fitch says Kazakhstan’s KKB-Halyk merger will be complicated

ALMATY, MARCH 10 2017 (The Conway Bulletin)  — The Fitch ratings agency said that it doubted a proposed merger between Kazakhstan’s two largest banks, Halyk Bank and Kazkommertsbank, could be achieved as smoothly and as quickly as the authorities had suggested.

Instead Fitch said that the bad debt inherited by Kazkommertabank when it completed the purchase of BTA Bank in 2015 was likely to linger despite a promise by the Central Bank to buy it up. It said that a Central Bank fund had promised 2 trillion tenge to buy up bad debt but that this was still short of the 2.4 trillion bad debt pile that Kazkommertsbank currently holds.

“Fitch believes there is a material risk that KKB’s problem assets may not be fully removed from the bank’s balance sheet or adequately reserved prior to a transaction,” Fitch said.

“Halyk Bank’s capitalization could weaken significantly as a result of the acquisition of KKB.”

This is important as Fitch is the first major Western institution to speak out against plans revealed earlier this month to merge the two banks.

The merged bank will have a 38% market share of the Kazakh banking sector. It placed Halyk Bank on a negative watch.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

 

Kazakh police arrests another official

MARCH 6 2017 (The Conway Bulletin) — Police in Kazakhstan arrested Bazarbai Nurabaev, chairman of the Committee for Geology and subsoil use within the ministry of investment and development, the latest high profile government official to be detained for corruption. The anti- corruption agency said that Mr Nurabaev and his deputies had been extorting bribes from several companies in return for licences.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Kazakh energy site pays fine

MARCH 4 2017 (The Conway Bulletin) — The consortium developing the Karachaganak oil and gas site in northwest Kazakhstan paid a fine of 10.4m tenge ($32,800) because of an inventory error, media reported quoting the court in west Kazakhstan. It wasn’t specific about the inventory error. In a far bigger arbitration dispute playing out from last year, the Kazakh government has accused the Karachaganak consortium of withholding oil worth billions.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)

Kazakh parliament approves constitutional changes

ALMATY, MARCH 5 2017 (The Conway Bulletin) — Kazakhstan’s parliament officially approved changes to the country’s constitution, changes President Nursultan Nazarbayev lauded as yet another step forward for Kazakh democracy but his opponents dismissed as tinkering necessary to impose a succession plan.

Unusually for Central Asia and the South Caucasus, Mr Nazarbayev didn’t opt to have his constitutional amendments approved by the populous through a referendum, as he has previously done. Instead, he presented them as minor changes to government that didn’t need to bother ordinary people.

“The government will strengthen its independence and responsibility for their decisions. Parliament will have new powers to control the activities of the Government and the executive bodies,” Mr Nazarbayev said in a statement on his website released after signing the changes into law. “The political system will gain a greater degree of democracy and stability. However, the basic foundation of the Republic of Kazakhstan is a presidential form of government.”

Analysts though have said that the changes are actually fairly substantial. The cabinet will report to parliament as well as to the president, it will also have greater influence over the hiring and firing of ministers and its executive will have more independence.

The division of responsibilities will also allow Mr Nazarbayev to concentrate on issues he is more comfortable with, such as foreign policy and security, rather than more troublesome issues such as education, health and social welfare.

Some observers said that behind these moves lay a strategy aimed at diluting power away from the presidency so that power can effectively be split with succession, rather than concentrating power in the hands of one person.

Mr Nazarbayev is 76-years-old and has ruled Kazakhstan since independence from the Soviet Union in 1991 but has yet to lay out a coherent succession strategy.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 320, published on March 13 2017)