National bank of Kazakhstan described the GS market in August 2007

/IRBIS, Dinara Mukasheva, September 7, 07/ - The National Bank of the Republic of Kazakhstan in its regulative press-release, dedicated to the state of the republic's financial market, cited information about the state of GS market in Kazakhstan in August 2007. Quotation start In August 2007 the Ministry of finance conducted an offering of 6-year indexed on inflation rate MUIKAM and 15-year long term saving MEUJKAM for a total sum of KZT2.3 bn. Effective yield on offered securities totaled 0.5% and 1.0% above inflation rate respectively. At that maturity of GS in August 2007 made KZT1.5 bn. As the result, volume of GS of ministry of finance in circulation as of end of August made KZT449.0 bn., having slightly increased compared to previous moth by 0.5%. Issue volume of notes of the National bank in August 2007 compared to July 2007 has decreased 4.9 times to KZT54.5 bn. At that, yield of short-term notes increased from 5.36% in July to 6.83% in August. With it, it is preserving the "proper" yield curve, with which notes with longer terms of circulation have higher profitability. Repayment of notes of the National bank for the reporting period taking into account interest payments totaled 394.0 bn. including advanced repayment. Volume of notes in circulation by the end of August 2007 totaled KZT537.8 bn. having decreased by 36.8% compared to July. The sharp reduction of notes in circulation was cause by the problem occurred with short-term liquidity of the second tier banks that was triggered by the global crisis. As a result, the National Bank decreased the volumes of short-term notes' issue and also has conducted its advanced repayment by initiative of certain banks. In August the volume of reverse repo made KZT401.9 bn.; the volume of operations on purchase of securities of the Ministry of finance totaled KZT40.8 bn. Operations on selling the securities of Ministry of finance and repo operations were not executed. Quotation end [2007-09-07]