OREANDA-NEWS. November 12, 2008. Kazakhstan plans to reduce export duty on crude from USD 210 to USD 139 per ton and the export duty on residual fuel from USD 130 to USD 95. This was announced by Kazakhstan’s Energy Minister Sauat Mynbayev at a Government’s conference.

According to Mr. Mynbayev, respective draft resolution had been prepared by the Ministry of Industry and Trade. Now the draft document is to be approved by respective public bodies.

Kazakhstan’s Prime Minister Karim Massimov announced that by the Government’s sitting November 25 the Cabinet would be ready to unveil its Economy Stabilization Program.

As Mr. Massimov informed, the Government and the Samruk-Kazyna National Welfare Fund are being advised by Credit Swiss and JP Morgan banks on capitalization of Kazakhstan’s backbone banks. “Given that Credit Swiss advises the British Government on similar issues and that JP Morgan advises US Treasury Department, we have incorporated the best foreign practices into this [stabilization] program”, Mr. Massimov said.

Citibank will advise the Government on establishment of the announced Assets Stabilization Fund, the Prime Minister said. He reminded that November 1 the Government had signed a resolution to establish the Fund. Citibank has “an extensive experience of launching such projects”, the Prime Minister emphasized.

Head of the Kazakhstan’s Government noted that within a week the Assets Stabilization Fund and the Samruk-Kazyna National Welfare Fund would address the most acute issues of financing the real sector. “I am expecting substantial moves within the following two weeks”, he added.

Agriculture Minister Akhylbek Kurishbayev briefed on the agriculture sector results. According to him, this year’s yield of oil-bearing crops is sufficient to produce about 160 tons of oil. Rice production totaled 130000 tons, which is sufficient to meet the domestic demand. Sugar production grew by 67% against 2007.

Mr. Kurishbayev informed that for the 9 months of the current year loans extended by commercial banks to agriculture processing enterprises shrank by 35% y-o-y. KazAgro National Holding Company has tried its best to piece out the shortage by extending loans worth KZT 12.4 billion. However, the funds are not sufficient, the Minister said, urging the Samruk-Kazyna National Welfare Fund to speed up depositing KZT 11 billion with commercial banks so that the funds could be further channeled to finance processing enterprises.

Mr. Kairat Kelimbetov, Chairman of the Samruk-Kazyna National Welfare Fund, informed that Damu [Small Business Development Fund, a subsidiary of Samruk-Kazyna] would reduce its interest rate on loans extended to small businesses under the country regions development program. The rate is to be reduced from 13-14% to 12.5%.

The Damu Fund is implementing its regions development program in line with respective government’s resolution as of 06.11.2007 to ensure stable economic development of the nation. The Fund in partnership with the local authorities co-finance priority small business projects in country regions.