Kazakhstan: Countercylical Support Loan
Validates the completion report's assessment of the program, which aimed to support the government in its countercyclical expenditure program for 2009 and enable adopting an expansionary fiscal stance. IED overall assessment: Successful
Kazakhstan was among the first countries in the Asia and the Pacific to be affected by the global economic and financial crisis in 2008. During 2000-2006, the Kazakhstan economy had been growing at a high growth rate of 9% per annum before its over-exposed banking sector was hit by international volatility. The 2008 global crisis spilled into the domestic economy and resulted in a credit squeeze affecting many sectors, especially the real estate and construction sector. Decline in trade and the commodity prices especially oil and minerals further decelerated the economy. As a result, the economic growth slowed down to 3% in 2008 and further, the economy contracted by 2.4% in 2009.
The government responded to the rapidly increasing unemployment by planning and implementing anti-crisis programs, and attempted to restore the economic growth. The ADB responded to the global crisis by establishing a countercyclical support facility in June 2009, and approved a Countercylical Support Loan for Kazakhstan in September 2009. This loan, with a single tranche of $500 million, aimed to support the government's Anti-Crisis Plan and Employment Generation Program. Using its savings from oil revenues, the government drew upon the National Fund for the Republic of Kazakhstan to implement these countercyclical reforms, which cost the government a large sum of $26.5 billion between 2008 and 2010.
This report validates the completion report's assessment of the program which aims to support the government of Uzbekistan in its countercyclical expenditure program for 2009 and to enable the adoption an expansionary fiscal stance. IED overall assessment: Successful
- Project Basic Data
- Project Description
- Evaluation of Performance and Ratings
- Other Performance Assessments
- Overall Assessment, Lessons, and Recommendations
- Other considerations and Follow-up