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EU ruling on equivalence to raise UKs Brexit fears
Canada, Brazil, Singapore, Argentina and Australia to lose some market access rights
29 2019 | Viewed: 61 | News / Theme of day | Read full
Shrinking China car market sparks fears for foreign groups
Ford and PSA plants running at fraction of potential output due to falling sales
29 2019 | Viewed: 67 | Analytics | Read full
Singapore plant lubricates expansion abroad
"The Belt and Road Initiative proposed by China promotes regional economic cooperation and coordinated development, and offers new opportunities for Chinese enterprises to go global," said Gu Xin, general manager of the international department of Sinopec Lubricant Co Ltd, at a recent lubricant promotion meeting in Thailand
29 2019 | Viewed: 54 | Foreign experience | Read full
Google ad rebound drives revenues higher
Second-quarter growth quiets fears of slowdown and sends parent Alphabets shares higher
26 2019 | Viewed: 64 | Analytics | Read full
Apple pays $1 billion for Intel unit in push for chip independence
Apple Inc took a major step toward supplying its own smartphone chips by purchasing the majority of Intel Corps modem business in a deal valued at $1 billion, the companies said on Thursday
26 2019 | Viewed: 64 | Foreign experience | Read full
Fitch Ratings: New Kazakhstan President Maintains Economic Policy Settings
Fitch Ratings-London-24 July 2019: Kazakhstan's President Kassym-Jomart Tokayev looks set to pursue the main economic policy priorities of his predecessor, Fitch Ratings says. These included structural reforms and, more recently, increasing social spending.

We expected policy continuity following Tokayev's landslide victory in June's presidential election. He had taken over as interim president following the resignation in March of the previous president, Nursultan Nazarbayev, after 30 years in office. Tokayev is a long-standing Nazarbayev ally and former prime minister. Nazarbayev will retain considerable influence as chairman of the Security Council and president of the Nur Otan party (he endorsed Tokayev as the party's presidential candidate).

Kazakhstan's parliament in July adopted the national budget for 2019-2021. The budget enacts the large programme of social expenditure announced by Nazarbayev in February 2019 that includes a 50% increase in the minimum wage, tax cuts for low-income earners, and investment in housing and transport infrastructure. It continues to target a close-to-balanced budget by 2021, and reductions to the non-oil deficit.

Government debt is low and favourable oil prices will help to contain the budgetary impact of higher government spending. Higher oil prices and output boosted fiscal receipts in 2018, helping to shrink the consolidated general government deficit to an estimated 0.6% of GDP from 6.4% in 2017, when support for the banking sector led to a surge in public expenditure.

We forecast the unconsolidated central government deficit to widen to 2.1% of GDP (from an estimated 1.4% in 2018). Tokayev may seek to consolidate his popularity with further increases in social and investment spending. Following the election, he has asked the prime minister to develop new social policy initiatives and measures to boost employment.

Tokayev has also announced debt relief 'for people who find themselves in very difficult living circumstances', telling Bloomberg on 26 June that the initiative would target 3 million Kazakhs, or 16% of the population. It will cost about KZT105 billion (USD274 million, or 0.17% of GDP). In the same interview, he said there should be no more government bailouts for privately owned Kazakh banks.

The debt-relief program will be financed from the recent targeted transfers (which are allocated to specific measures) from the National Fund of the Republic of Kazakhstan (NFRK) to the budget, amounting to KZT370 billion. The government in April 2019 increased the yearly guaranteed NFRK transfers for 2019-2021 to KZT2.7 trillion. Its medium-term fiscal target aims to cut transfers to KZT2 trillion by 2020, from KZT2.6 trillion in 2018.

The clean-up of Kazakhstan's banking sector has continued in 2019, with the state-owned Problem Loan Fund purchasing an additional KZT604 billion of distressed assets from Tsesnabank, using proceeds from bonds subscribed by the central bank. Given the levels of bad loans (mostly deep-seated legacy loans to corporates) at end-2018 revealed by IFRS 9 disclosures, we think some medium-sized banks could require fresh capital injections or other forms of external support (such as sales to the Problem Loan Fund) to absorb potential additional impairment losses.

We think off-government balance sheet transactions could be used again to fund further government bank support if it were needed; for example, following the central bank's Asset Quality Review, due by end-2019.

We expect the new president will continue existing efforts to improve the business climate and institutional policymaking framework, support agriculture and the digital economy, and speed up privatisation. However, economic diversification will be slow as non-oil growth is constrained by low productivity and labour supply growth, in our view.

Kazakhstan's 'BBB'/Stable sovereign rating balances strong public and external balance sheets against high commodity dependence, a weak banking sector, weak governance relative to ratings peers, and high inflation.

26 2019 | Viewed: 76 | Press Releases | Read full
Pound hits best levels in a month against euro
Sterling also up against the dollar as Boris Johnson heads for Downing Street
25 2019 | Viewed: 60 | News / Theme of day | Read full
BOE Is Losing Credibility With the Public, BofA Says
The BOEs forecasts are losing authority with the public as well as markets, says the U.S. lender.
25 2019 | Viewed: 63 | News / Review of Mass Media | Read full
Facebook reveals new FTC antitrust investigation
Hours after settling with agency over privacy, company results disclose second probe
25 2019 | Viewed: 60 | Foreign experience | Read full
White House and Congress reach deal on debt ceiling
Two-year agreement announced by Trump would raise federal spending significantly
23 2019 | Viewed: 63 | News / Theme of day | Read full
Fed sets sights on quarter-point rate cut
Chairman Jay Powell treads cautiously in supporting US economy
22 2019 | Viewed: 69 | News / Review of Mass Media | Read full
Trump wants weaker dollar but it could be a hard sell
President Donald Trump wants a cheaper dollar, saying earlier this month the United States should match what he says are efforts by other countries to weaken their own currencies - giving them an unfair trade advantage
19 2019 | Viewed: 82 | News / Theme of day | Read full
No change to US dollar policy as of now, says Treasury chief
Steven Mnuchin says Washington could consider a different stance in future
19 2019 | Viewed: 66 | News / Theme of day | Read full
G7 urges tough Libra regulation, agrees to tax digital giants
Digital currencies such as Facebooks planned Libra raise serious concerns and must be regulated as tightly as possible to ensure they do not upset the worlds financial system, Group of Seven finance ministers and central bankers said on Thursday
19 2019 | Viewed: 62 | News / Review of Mass Media | Read full
Eurasian Resources Weighs Sale of Congo Mining Assets
Eurasian Resources Group Sarl, the mining firm backed by the Kazakhstan government, is exploring options for assets in the Democratic Republic of Congo including a potential sale, according to people with knowledge of the matter
19 2019 | Viewed: 74 | Foreign experience | Read full
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Interview with Sholpan Kozhamkulova

Sholpan Kozhamkulova
Sholpan Kozhamkulova, Ph.D., Assistant Professor, Chair, Department of Journalism and Mass Communication, KIMEP, Almaty

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