National bank to consider refinance rate for Q3 and introduction of new MRR on June 23

/INTERFAX-KAZAKHSTAN, Almaty, June 10, 08/ - Refinance rate for Q3 2008 and introduction of new minimal reserve requirements (MRR) will be considered at the session of the Board of the National Bank of Kazakhstan Board on June 23, the head of National bank Anvar Saydenov informed on the press-conference on Monday in Almaty. He noted, that "different ways of MRR rates review will considered at the session". As it was informed, the National bank is considering a possibility to reduce the MRR size for commercial banks by the external liabilities to 6 %. "Within the nearest time we are planning to decrease the MRR norms on external liabilities down to 6 %. According to our estimations, it will allow for banks releasing additional liquidity up to KZT100 bn.", - the deputy chairman of National Bank Bisengali Tadjiyakov informed at the end of May, speaking at the plenary session of the Majilis of parliament in Astana. Current KZT/USD rate- 120.70/$1. Meanwhile, at the today's press-conference Anvar Saydenov noted that the reduction of MRR on current liabilities down to 6 % - "is only one of the ways suggested". "Now it's hard to say, which way will way be chosen, but in any case it is clear that there won't be any increase, which was postponed by us several times due to some reasons. If consider in complex domestic and other liabilities, loading banks, then in any case loading will be reduced", - the head of the National Bank told. As informed, in December last year the National Bank rescheduled introduction of the new MRR for commercial banks to July 1, 2008. It was supposed, that the new MRR norms will make 5 % by internal liabilities and 10 % on other. The current values of minimal reserve requirements norms are 6 % and 8 % correspondingly. The delay in December was not the first on the side of the National Bank. Earlier, the National bank was planning to introduce new rules on minimal reserve requirements to banks beginning August 29, 2007, and then it was rescheduled to October 9 of last year, and then - to January 15, 2008. Currently the refinancing rate in the Republic makes 11 % APR. For intensification of refinancing rate regulation functions the National Bank of the Republic in 2005 had introduced the practice of its periodic (quarterly) review. However, the new refinancing rate may be introduced starting from any date, determined by the National Bank. In 2006 the National Bank increased the official refinancing rate to 8.5 % from 8 % APR in April, then in July to 9 % APR. This indicator was preserved until December 1 last year, when the refinancing rate was increased to 11 %. [2008-06-11]