Economic stabilization programme

Astana, 26 November 2008 (Khabar) - Government approves economic
stabilization programme. The government has approved a joint plan of action aimed at the stabilization of the Republic's economy and financial sector.

The document was unanimously approved by heads of all state-run holding
companies as the document aims to ease the negative consequences of the
ongoing global crisis and provide the necessary basis for future growth in
the country.

Karim Massimov, Prime minister of Kazakhstan:
- I think the joint action plan proposed by the government, the national
bank and the financial supervision agency as well as the two holding
companies, Kazyna and KazAgro all meet the requirements set by all of us. It
is all about those sore spots in the economy which we need to cure.

The anti-crisis programme is based on five main principles. Each of them
includes a number of measures supported by significant financial aid. The
first item in the document stipulates the stabilization of the financial
market with four billion US dollars to be invested in the project.

Karim Massimov, Prime minister of Kazakhstan:
- The second item in the document includes some actions aimed at the
stabilization of the real estate market with three billion US dollars to be
allocated for this purpose. The third item stipulates the support for small
and medium sized businesses and requires close to one billion US dollars.
The fourth stage includes a boost for the agricultural sector with close to
one billion US dollars to implement some innovation and infrastructural
projects requiring close to one billion US dollars.

Commercial banks are also expected to play a key role in the stabilization
programme. Apart for the measures taken, the national bank will provide
financial support structures with additional liquidity to improve loan
portfolios.

Anvar Saidenov, Chairman, National Bank of RK:
- We will assist with the recapitalization of banks and improve the quality
of their assets as a number of measures are to be taken including the
creation of a stress assets fund. Later on, banks will continue issuing
loans for the benefit of the Republic's economy.

Meanwhile, the government is also planning to diversify the pension fund's
investment portfolios which will make it possible to provide more
effectiveness using the pension savings which means it will maintain their
high incomes. As part of the real estate market assistance programme, all
the unfinished residential complexes are set to be finished, to provide new
housing for those who need it, with mortgage loans issues solved as well.
Kairat Kelimbetov, chairman of board, Samruk-Kazyna National welfare Fund:
- The Samruk-Kazyna Funds is set to open a number of opportunities in
commercial banks to issue mortgage loans to various borrowers with an
interest rate of between 10.5% and 12.5% for 15 years with an option of
advanced repayment.

It is also very important that some preferential conditions will be provided
for those who had already taken a mortgage loan. There will also be a
special opportunity opened to allow borrowers to refinance their loans.
Those who bought their flats three or four years ago, with an area under
120 square metres and being the only property they have, will be able to use
the new mortgage system. The programme also stipulates some preferential
loans for small and medium sized businesses which is expected to provide new
jobs and productions. After the discussion, the government unanimously
supported the programme. This time, the Premier gave his cabinet a period of
two weeks to work out a step-by-step plan to implement all the assigned
measures.