Dependency of Kazakhstan on oil prices is fraught with a slowdown - IFC

/IRBS, Oct.6, 00/ - REUTERS informs, with the reference to the executive vice-president of the International Financial Corporation (IFC), Peter Voike, that the stabilization of the economy of Kazakhstan was due to favorable world oil market, though such situation is fraught with a slowdown in economic reforms. He said that stable 5-8% growth of Kazakhstan was good and the inflation is under control and the fiscal policy is good. He said that they had warned the government of such a situation, because under a macroeconomic stabilization due to oil price growth there is a risk of a slowdown in economic reforms. As he says the privatization has already slowed down in some industries and wished that the situation would improve in mining industry. The vice-president said that the country had enormous resources, especially in mining industry, though the most of the investments go into oil industry. Mr. Voike mentioned that Kazakhstan has the biggest investments from IFC among Central Asian countries due to more liberal private sector in Kazakhstan compared to other countries of the region. Our liabilities equal $100 mln in Kazakhstan, with the most of them going to metallurgy, oil and financial sectors, he said. He noted that the decision of the National Bank to expand the internal market and to increase consolidated supervision in order to provide the transparency of banking activities was in line with the IFC strategy. He said that it was just that the National Bank is insisting on not granting the financing to its founders or shareholder, and affiliated persons, because the banks should make their decisions purely on the basis of commercial assessment and not on the pressure of the shareholders. He said that it was not an excessive supervision.