Government determined sources for redeeming of shares of Kazakhstan companies, circulating on international stock exchanges

/INTERFAX-KAZAKHSTAN, Astana, October 16, 07/ - For purchasing of shares of Kazakhstan companies, circulating on international stock exchanges. Government of Kazakhstan suggests to direct part of funds form republican budget-2007, foreseen for financing of state fund for stable development Kazyna JSC and National scientific-technical holding Samgau JSC. "We'll have two institutions - fund Kazyan and holding Samgau, which will use the instrument of purchasing of shares of Kazakhstan companies", - had told the minister of economy and budget planning Bakhyt Sultanov to journalists after the session of government of republic on Tuesday. As it was informed, in the parcel of amends to acting republican budget, prepared by government, is foreseen to increase expenses of holding Samgau by KZT12.2 bn., of fund Kazyna by KZT122 bn. (current 120.66/$1). As B.Sultanov explained, part of these funds would be directed for "purchasing of shares of Kazakhstan companies", circulating on international stock exchanges. By his turn, head of state fund Kazyna Kayrat Kelimbetov told the journalists that for redeeming of shares fund may use the foreign borrowings, and also by co-financing from world financial institutions. As it is known, president of Kazakhstan Nursultan Nazarbayev had stated before government then task for redeeming of shares of Kazakhstan companies on world markets in connection to decrease of ratings of Kazakhstan by international agencies and correspondingly decreased of domestic companies' shares prices. International rating agency Standard & Poor's on October 8 had decreased the Kazakhstan long term rating of liabilities in foreign currency to "BBB-" from "BBB". Forecast - "stable". Expect this, S&P decreased long term and short term ratings of republic on liabilities in national currency to "BBB/A-3" from "BBB+ /A-2". Ratings were excluded from CreditWatch list, where they were placed on October 2, 2007. Agency confirmed the short term rating of Kazakhstan on liabilities in national currency at the level "A-3" and rating at national currency at the level of "kzAAA". For last years IPO on London stock exchange had conducted Kazakhmys, KazakhGold, Chagala Group, ShalkiyaZinc, Kazakhstan Kagazy, Exploration Production KazMunayGas JSC, Alliance Bank, Kazkommertsbank, Halyk bank. [2007-10-16]