Kazakhstan to call Moody's negative outlook to banks as "adequate"

/REUTERS, Astana, Raushan Nurshaeva, Editor - Ann Smirnova, October 21, 08/ -Moody's negative outlook relative to Kazakhstan banking sector is "adequate" in the context of situation on the world markets, but authorities expect agencies will "worthily" estimate government's stabilizing measures, Bakhyt Sultanov the minister of Economy said. On Monday gave negative outlook Kazakhstan banking system because of assets quality problems and primary prices fall. The same day authorities announced that in-flow in economy wil make $15 bn., including $10 bn. from the National Bank. "Anxiety of al rating agencies is - normal for today's condition of world economy. It is an adequate reaction on the side of rating agencies" - Sultanov said to journalists. He reminds that authorities since last year allocated $4 bn. for construction sphere, small and medium business support through commercial banks. "We expect the adequate reaction from the side of rating agencies and all measures are estimated worthily, which government and country's financial bodies to accept" - Sultanov said. The agency in its turn considers it to very early to say how $10 bn. support form National Fund will influence banking rates. Kazakhstan banks badly suffered from world liquidity crisis after several years of sharp growth, to which aggressive borrowings contributed. Sultanov said that banks "successfully" follow the schedule of debts maturity this year, though portfolio quality is decreasing. "Next year they are supposed to manage with maturity terms" - the Minister said. "Our objective is double - on the one hand we should substitute crediting...at the expense of National Fund's assets...Decision of the second problem we see through creation of stress assets fund, for improvement of bank status...for relation to be adequate on the side of rating agencies" - the Minister said. Kazakhstan GDP rates growth, according to preliminary data of the Ministry of Economy, decreased by more than twice to 4.0 % for nine months of the current year from 9.7 % for the same period of last year. "We think that significant in-flow of such assets will allow us not only stabilize economy development, but reach those mid-term macro indicators, which we planned in the 3year budget project" - the Minister said. In 2009-2011 Kazakhstan is waiting for GDP growth at 5.0 - 7.0 %. [2008-10-22]