Program of stabilization of Kazakhstan`s economy

Astana, 14 October 2008, (Khabar) - Nursultan Nazarbayev spoke at the
extended meeting of the government. At a government meeting, Nursultan
Nazarbayev announced that Kazakhstan is ready to allocate 10 billion US dollars from the national fund for the stabilization of its economy. This will be the main aim of the Kazakh government for the next two years so the head of state commissioned the government to develop an effective stabilisation programme.

The republic is able to invest billions of US dollars into its economy without any harm to the social sphere and the national fund which already has over 26 billion dollars for guarantees. The
programme on overcoming the aftermath of the world crisis must meet such priorities as providing macro economic stability, social prosperity for Kazakhstan's residents and the modernization of the economy. The prime minister and his deputies will bear personal responsibility for each of these directions, the president noted.

Nursultan Nazarbayev, President of RK:
- It has already been decided to increase the guarantee levels for private
deposits in commercial banks to 5 million tenge accounts for 99% of all bank
accounts. This means that residents who have bank deposits up to 5 million
tenge may be assured of the safety of their money. To provide the banking
system with the liquidity needed for normal operations, the National bank
needs to develop and adopt some new measures. It should think about
decreasing the minimal reserve requirements that will provide extra cash for
the banking system. Also, it is necessary to adopt certain measures which
will widen the possibilities for the banks to attract short-term financing
from the National Bank. All this should be done within a month. Another
important question is the support of further economic growth in conditions
where cash flow is being cut in the world financial system. The "Kazyna"
fund has experience in placing deposits into the banking sphere which will
be further sent on for investment into projects. In addition, we should fix
the launch of the Tress Assets' Fund and its capital on the budget account
for 2008-2009 which should be no less than 1 billion US dollars.

Nursultan Nazarbayev also announced the merger of the "Samruk" holding and
the "Kazyna" fund. The new structure will also involve social and
entrepreneurial cooperation and will administer state equity participation
in such companies as "Kazatomprom", "Kazakhmys", "The Eurasian natural
resource Corporation", "The Kazakhstan mortgage guarantee fund" and "the
Housing construction and savings bank". Thus, this mega-holding, which the
president suggested naming the National Capital Fund, will be a very
powerful financial and economic structure with great possibilities.


Nursultan Nazarbayev, President of RK:
- By merging the active investment position of the "Kazyna" fund with the
strategic resources of "Samruk" holding, we will create a world class state
corporation which is able to implement any project. The new holding should
adopt the experience of such successful holdings as "Temasek" in Singapore
and "Khazanah" in Malaysia. The "SamrukKazyna" holding should activate work
in the regions. Every region has its advantages such as resources, land and
the most important thing - people and the holding should use these
advantages to develop large industrial projects that should promote both
regional and industrial breakthroughs in the whole country. Out of the ten
billion US dollars allocated from the National Fund for the stabilization
programme, I have decided to allocate five billion US dollars for
capitalising the holding. "Samruk" holding should be flexible, active and
mobile and we should create all the necessary legislative conditions for it.
Under crisis conditions, the holding must become the centre of economic
activity of the government.

Nursultan Nazarbayev appointed the prime-minister Karim Massimov to head the
committee of directors and the ex head of the presidential administration
Kairat Kelimbetov as the chairman of the committee of directors. Nursultan
Nazarbayev also commissioned the government to use special measures on the
creation of new working places and, most importantly, assured Kazakhstan's
residents of further growth in welfare benefits.

Nursultan Nazarbayev, President of RK:
- Despite problems in the world economy and the difficulties which will
occur next year, I've asked for an increase in welfare benefits, pensions
and the salaries of civil servants. In this connection, in 2009-2010,
pensions and scholarships will increase by 25% and in 2011 - by 30%.

The head of state noted that in this situation Kazakhstan should think about
the development of the infrastructure of the republic. The president paid
special attention to the power energy sphere and pointed out that the
realization of all intended projects should be started by the end of this
year and first of all, this concerns the construction Of the Balkhash
heating station. Summarizing his speech, The president announced that
Kazakhstan has all possibilities both for overcoming the crisis and entering
a new level of development for the country. The head of state also announced
other appointments, based on the missions that he has asked the government,
the administration of the president and the "Nur Otan" party to perform.

Nursultan Nazarbayev, President of RK:
- I am going to appoint the present speaker of parliament, Aslan Musin to
head this machinery. In connection with the move to another post, the first
deputy head of the "Nur Otan" party, Adilbek Dzhaksybekov is discharged from
his post and the deputy head of the presidential administration Darkhan
Kaletayev will occupy this post. In his place, I will appoint the ex head of
the Pavlodar region. The remaining appointments, I'll make later.