350 billion tenge to be allocated for agricultural sector development

Astana, 18 October 2008, (Khabar) - The government has announced that
Kazakhstan would experience no grain shortage with bread prices to remain stable, since all necessary measures have been taken.

According to the
Minister of Agriculture, Akylbek Kurishbayev, this year's yield is still
enough for export. In order to keep the domestic market stable, the
government formed a state food reserves, but it is also necessary to support
local farmers and agricultural products processing enterprises. It can be
done through a lending scheme offered by the KazAgro National holding
Company. According to the Minister, the expansion of grain and meat export
will also play a positive role and it is still necessary to increase the
investment attraction of the agricultural sector and stimulate business
initiatives.

Akylbek Kurishbayev, Minister for Agriculture of RK:
- In order to implement the former tasks, I think it is necessary to
allocate 350 billion tenge for the KazAgro National Holding Company for the
next three years to add the money to the company fixed capital.

The head of the cabinet, Karim Massimov approved such a proposal with deputy
Prime Minister Umirzak Shukeyev appointed as head of the project.

Karim Massimov, Prime Minister of Kazakhstan:
- The ongoing economic difficulties around the world should not have a
negative influence on our economy. First of all, it should not affect the
development of agriculture as all necessary funds will be allocated. At the
same time, we need to see the effect brought by the money we invest.

The Prime Minister also asked his deputy, Yerbol Orynbayev, to check the
implementation of the program called "100 schools 10 hospitals" with the
ministers for education, healthcare and culture and information and to visit
all regions for inspection. Such a decision was taken after a large number
of violations were committed by construction companies and the unused budget
money.