National Bank of KAzakhstan to decrease reservation standard for banks

/REUTERS, Astana, Raushan Nurshaeva, May 28, 08/ - National Bank of Kazakhstan is ready for significant reducing of reservation standard for banks and promises to decrease the standard of reserves on external liabilities in nearest future by 6.0%, Bisengali Tagzhiyakov, vice-chairman of NB said. External standard now is 8.0%, though since June it should have increased till 10.0% with simultaneous decreasing of reservation standard on internal liabilities from 6.0 % to 5.0%. Tagzhiyakov didn't specify whether this decision was canceled or not. "In the nearest future we plan to decrease the standards of minimal reserve demands on external liabilities till 6.0% as well as internal" - he said in the Parliament. "According to our evaluation, it will allow banks to release additional liquidity till KZT100 bn." - he added. National Bank has already postponed increasing of reservation on foreign debts - originally, this standard was planned to increase since January 15, however, due to straggly with liquidity crisis, the date was shifted on July 1. Tagzhiyakov assured that National Bank is ready to provide stability of financial market by additional liquidity, both at the expense of refinancing and decreasing of reserve demands. "In case of necessity, measures on stability of financial market will be reinforced. It means possibility for significant decreasing of current standards of minimal reserve demands" - he said. ($1 = KZT120.5) [2008-05-28]