Government to introduce anti-crisis programme

Astana, 11 November 2008, (Khabar) - In two weeks time, the government is set to introduce its anti-crisis programme with a corresponding statement having been made by Karim Massimov during a government conference.

The session was opened with a pricing revision as this year, consumer services and food have seen 8% and 10% increases accordingly. This had a clear contribution to inflation which has now reached 8.8% as a result of the past ten months.

Vladimir Shkolnik, Minister for Industry and Trade of RK:
- According to recent price reports, we can see that the cost of services
and food have increased by 8% to 9% in Astana, Almaty, the Kostanai region,
Eastern Kazakhstan, Northern Kazakhstan and the Zhambyl region.

There will be no food shortages in the Republic as the government has
already formed a reserve of staple food items. The Minister for Agriculture
also stated that the regions have already formed their grain stocks and
signed sugar supply memoranda. Moreover, this year's yield will be able to
satisfy 100% of the republic's rice demand and 80% of vegetable oil demand.
Akylbek Kurishabyaev also said that the Ministry is mainly concerned with a
slowdown in processing due to a decrease in lending for the industry. Such a
problem, according to the head of the Samruk-Kazyna Holding Company, is
being solved. On condition that refinancing restrictions on previously
obtained loans are cancelled as well as current restrictions on subsidising
turnover funds, the commercial banks are ready to reduce their interest rate
for small and medium sized businesses to 12.5% and use all the money
allocated by the government before the end of this year.

Kairat Kelimbetov, chairman of board, "Samruk-Kazyna" National Welfare Fund
of RK:
- Before January 1, 2009, the 50 plus 50 programme is to be fully
implemented. Each bank has is own schedule for using the money. If they fail
to do it in time, the funds will be recalled and redistributed amongst other
banks.

The Prime Minister was satisfied with the work done. According to Karim
Massimov, the measures being taken will allow the government to introduce
its anti-crisis programme within two weeks. The process of injecting
additional money into the banks' capital was achieved with the stress assets
fund having been created. The Premier has no doubts about the implementation
of the projects as the government is consulting international financial
structures such as Credit Suisse, JP Morgan and Citibank.

Karim Massimov, Prime Minister of Kazakhstan:
- Concerning those two weeks that we need to solve the ongoing issues of
financial shortages, we are planning to direct some money through the stress
assets fund to be used for lending, the provision of additional
capitalization for the banks and we are also going to inject some funds into
the Republic's economy through the Samruk-Kazyna national welfare fund. I
think it will give a boost to the economy.

At the conference, the Minister for Energy and Mineral Resources, Sauat
Mynbayev also reported that the Ministry is planning to reduce fuel oil
export duties from 130 to 95 US dollars per tonne and for crude oil from 210
to 139 US dollars. At the end of the conference, the territorial heads also
reported on the current heating season saying that the situation in all
regions is stable and everything is ready for the winter. The Premier
praised the regional heads' optimism and reminded everyone about their
personal responsibilities in the event of emergency situations and
breakages.