Kazakh Parliament ratifies loan agreement with IBRD

The Parliament has ratified the loan agreement between Kazakhstan and the International Bank for Reconstruction and Development. The agreement on borrowing funds from the above-mentioned financial institution in the amount of over 345 million euros was signed on August 24, in accordance with the Presidential Decree of July 2. Finance Minister Yerulan Zhamaubayev noted that the full amount would be used to finance the budget deficit. This year it amounted to 3.3 percent of GDP or about three trillion tenge, Zhamaubayev added. The adoption of the law will support a set of government measures aimed at improving the socio-economic situation in the country and other state priorities. 

“The loan is provided to the Republic of Kazakhstan with a maturity of eleven and a half years, including a 2.5-year grace period. One time front-end commission makes up 0.25 percent of the loan amount, and the commitment fee is 0.25 percent of the undisbursed loan amount. Servicing and repayment of the borrowed loan will be carried out at the expense of the state budget in accordance with the financial terms established in the loan agreement,” Zhamaubayev said.