Government decides to establish Fund of stress assets

/INTERFAX-KAZAKHSTAN, Astana, November 1, 08/ - Kazakhstan Government decided on establishing of the Fund of stress assets (FSA), correspondent of Interfax-Kazakhstan reported. "I think that we need the Fund of stress assets and we must establish it" the Prime Minister Karim Masimov said, speaking at a government session Saturday. "We should discuss additionally how and where we will invest" - he added. At that the head of the Government noted that while creating FSA "the Government will have an opportunity to take some assets on its account". "That means we release cash for crediting actual economy" K. Masimov said. "All these released assets should be primarily directed to small land medium business crediting, which is forming business activity" stressed the head of the Government. As was informed, FSA is created in Kazakhstan for republic's financial system and commercial banks support under world financial crisis conditions. In particular, KZT52 bn. (current 119.84/$1) of this year republican budget is planned to be allocated for FSA capitalization with its further completion to $1 bn. in 2009. In September the head of the Ministry of Finance Bolat Zhamishev informed that the FSA is planned to be capitalized at the expense of $1 m. budget assets and $5 bn. net investment borrowing. Recently the Government decided, which was approved by the leading commercial banks, to redeem 25 % shares in each bank at $5 bn. to support liquidity and activate measures on economy's sectors crediting. [2008-11-03]