ASTANA, KAZAKHSTAN - Asian Development Bank President Haruhiko Kuroda today met with Kazakh President Nursultan Nazarbayev to discuss ADB activities in Kazakhstan.
ADB's issuance of local currency bonds highlights the multilateral development bank's confidence in Kazakhstan's economy and its intention to strengthen its long-term partnership. In July, ADB became the first supranational institution to issue bonds in Tenge. ADB intends to increase its funding of private sector operations in Kazakhstan in the local currency.
ADB is assisting the start-up of domestic securitization in Kazakhstan and has already prepared a set of recommendations for strengthening regulatory capital requirements for first domestic securitization. Kazakhstan banks have recently entered international securitization markets and ADB has approved $325 million in guarantees to that end.
Since 2006, ADB has approved financing for 7 private sector investments in Kazakhstan, totaling $550 million.
Stephen Wermert, ADB Country Director of Kazakhstan said: "With these activities, ADB's partnership with Kazakhstan has entered a new chapter. We will continue to actively explore further opportunities to expand our private-sector operations in Kazakhstan."
ADB's public-sector operations will continue working with Kazakhstan for rural support, mainly through water supply and sanitation, water-resources management, and regional infrastructure projects.
ADB has also been helping the Government and the National Bank of Kazakhstan (NBK) introduce an inflation targeting monetary policy regime and strengthen the governance of financial assets managed by NBK.
Mr. Kuroda is visiting Kazakhstan before his attendance at the 6th Ministerial Conference for Central Asia Regional Economic Cooperation (CAREC), in Dushanbe. He praised Kazakhstan's role in regional cooperation and said ADB would sharpen its efforts under CAREC to bring further benefits to member countries.
Since joining ADB in 1994, ADB had approved 14 public sector loans for Kazakhstan totaling $483 million and $550 million in loans and securitizations for private sector development. The country has also received 63 technical assistance projects totaling $28.7 million.