Construction boom in Kazakhstan is behind, market is estimating the risks

/REUTERS, Almaty, Olzhas Auezov, October 9, 07/ - Building companies of Kazakhstan had sudden decreased the activity, market of immovable had freeze in expectation of prices' correction, and analysts are estimating the risks of banks, which were the main creditors of the branch. Crisis of international debt markets had sudden limited the access of builders to loan resources of the banks, which themselves had ,meet the liquidity deficit.. "There estimations that up to 90% of activities of builders were financed by credit funds", - told the chairman of National Bank of Kazakhstan Anvar Saydenov on the briefing on Monday. "From total volume of credits of banks - 20-25% are in building sector", - told on Tuesday the analyst of Bear Sterns Okan Akin. Bankers say that they do not credit new and recently started projects, and close to finishing are considering carefully. Situation is illustrated by building platforms of Almaty, many of which are empty due to stoppage of works. However by the words of Saydenov, from the side of builders "currently there are no mass non-payments". Prices and meters Participants of secondary market of immovable are saying that volume of deals had decreased significantly, after in summer prices had reached the peak had started to descend. By data of realtor company Absolute, in September average monthly price of square meter of residential immovable in Almaty decreased by 5.06%, and in October by 2.87% to $3.422. "One of banks, with which we had speak, consider that prices may decrease by 40%", - told the analysts of western bank, recently visited Kazakhstan. However the particular support to the market may be rendered by government. Minister of economy and budget planning of Kazakhstan Bakhyt Sultanov told the journalists on Tuesday, that Cabinet intends to increase the volume of re-financing of mortgage credits. "From the side of government measures are undertaken. Now we are considering the question about capitalization of Kazakhstan mortgage company, which may by redeeming of liabilities from second tier banks provide the liquidity for banks", - he told.. Analysts consider that influence of building sector on quality of banking assets will be obvious later. "I think that we'll see the full effect after six months", Akin from Bear Sterns told. [2007-10-10]