/IRBIS, April 19, 00/ - According to the agency's press release, Thomson Financial BankWatch has increased sovereign rating of Kazakhstan and rating of Kazkommertsbank basic debt service from "В" to "B+".

It was done in connection with economic reforms, supported by the new three-years program of IMF, and economic stability.

The current policy of the Government and re-election of the president of Kazakhstan on January 1999, in opinion of Thomson BankWatch, should ensure the political stability, realization of economic reforms, rigid financial budget discipline, monetary control, and structural transformations.

Thomson BankWatch consider the tax policy as too rigid, in result, taxes collection remains low, and taxes obtaining in the extractive sectors of economy continue to provide third of budget.

In result, the fiscal policy, as well as the whole economy, remains vulnerable to the prices in the world market.

Though the banking system of Kazakhstan became one of the strongest in CIS, the reforming of economy are moving slowly because of limited volumes of banks' credits, considers the rating agency.

In opinion of Thomson BankWatch, the low level of the population' deposits in the Kazakhstani banks mirrors absence of the public trust in the banking system.

The assets of banks did not exceed 10% from GDP by the end of 1999.

The account deficiency of current operations remains normal, while the payments of external duties are not so big in an intermediate period. In result there should be no problems with liquidity, considers Thomson BankWatch.

The agency has increased a rating of Kazkommertsbank to a level of the Kazakhstan's rating.

Kazkommertsbank is the largest bank in Kazakhstan. The liquidity of bank is improved due to the increasing liquidity of the Kazakhstan market, and also due to sale of the shares of Shymkentnefteorgsintez Refinery to the sum of 4 billion tenges ($29 million).