Payment balance and foreign debt of Republic of Kazakhstan at the end of 2008

/IRBIS, Dinara Mukasheva, April 14, 09/ - The National Bank of Republic of Kazakhstan released information on payment balance and foreign debt of republic of Kazakhstan at the end of 2008. According to the National Bank, world prices on main commodities of Kazakhstan export, volumes of foreign financing of infrastructural projects and servicing of foreign debt remain as the leading factors for Kazakhstan payment balance. In 2008 we observe the fall commodity import growth rates (in 2007 growth by 38 %) official import made $37.9 bn., of which 80 % falls to commodities of intermediate industrial consumption and investment commodities. Reduce by 5.4 % of international services import is inked with finishing construction of the second generation plant at Tengiz deposit. As a result, deficit of international services balance reduced by 18 %. Deficit of revenue balance increased by 45 %, what is linked with growth of reinvestment and dividends of direct foreign investors of major export enterprises. As a result, record inflows of commodity export, having compensated net-flow-out of resources on other components of current transactions account, provided high surplus of payment balance current account, amounting 5.3 % relative to GDP. World financial crunch didn't influence much the inflow of direct foreign investments in the country. Historically high value of net-inflow of financing on direct investments - 11 % to GDP was registered in 2008. Payment balance of Kazakhstan (USD m.) -------------------------------------------------------------------------- 2008 2007 2006 -------------------------------------------- --------- --------- --------- Current account 6,978.1 -8,226.4 -1,998.6 Trade balance 33,518.8 15,091.0 14,641.7 export 71,970.8 48,351.1 38,762.1 import -38,452.0 -33,260.2 -24,120.4 Balance of services -6,615.7 -8,071.8 -5,941.6 export 4,383.0 3,555.0 2,818.7 import -10,998.7 -11,626.8 -8,760.4 Balance of salary -1,452.0 -1,203.2 -948.4 Balance of investment revenues -17,488.3 -11,882.8 -8,543.1 Balance of current transfers -984.6 -2,159.5 -1,207.2 Transaction account with capital and finance 1,219.2 8,366.3 16,200.8 Balance of capital transaction account -41.5 -37.6 31.9 Financial account 1,260.8 8,403.8 16,168.9 Direct investments 10,731.5 7,974.9 6,662.9 Foreign direct investments -3,811.9 -3,151.3 384.7 direct investments in Kazakhstan 14,543.4 11,126.2 6,278.2 Portfolio investments -9,475.4 -4,583.1 -4,501.4 assets -7,207.1 -4,101.3 -9,176.7 liabilities -2,268.3 -481.8 4,675.4 Derivative financial instruments 157.2 -366.6 -67.8 Mid- and long-term loans and credits 4,384.1 11,373.6 14,431.1 assets -1,824.4 -4,940.6 -4,226.6 liabilities 6,208.4 16,314.2 18,657.7 Other short-term capital -4,536.7 -5,994.9 -355.9 Mistakes and omissions -6,025.9 -3,168.5 -3,127.7 Total balance 2,171.4 -3,028.7 11,074.6 Financing -2,171.4 3,028.7 -11,074.6 Reserve assets of NB -2,171.4 3,028.7 -11,074.6 -------------------------------------------------------------------------- Gross foreign debt of Republic of Kazakhstan as at the end of 2008 is estimated in $107.8 bn. Government foreign debt, including liabilities of the Government and the National Bank of Kazakhstan, takes less than 2 % of total gross foreign debt. Beginning the second half of 2007 while reducing new financing and significant payments on foreign debts of banking sector, the level of debt of the sector remained unchanged till the mid 2008. Beginning the second half of 2008 foreign debts of banking sector show the fall and are estimated 36.4 % of total gross foreign debt at the end of 2008. Improvement of foreign debt relative parameters happened in 2008, which traditionally concerned as financial responsibility of the country in mid-term prospect. In particular, gross foreign debt GDP ratio, which happened to be high during the last years, made 81.5 % as at the end of 2008. Gross foreign debt to commodity service export ratio increased, resulting in 141.2 %. Growth of commodity and service export conditioned some improvement of correlation of long-term foreign debt maturity and servicing to commodity and service export. According to preliminary data of monetary review of the banks as on April 1, 2009, Kazakhstan banks foreign debt reduced 10.7 % compared to December 2008. Foreign debt of Kazakhstan as at the end of the period (USD m.) ----------------------------------------------------- 2008 2007 2006 ------------------------- --------- -------- -------- Total gross foreign debt 107,812.8 96,914.3 74,014.1 short-term 10,637.1 11,958.9 12,660.9 long-term 97,175.7 84,955.4 61,353.2 SA* sector 1,641.9 1,491.5 1,495.2 short-term 23.8 60.3 38.8 long-term 1,618.1 1,431.2 1,456.4 Monetary regulation bodies 12.1 106.9 1,076.8 short-term 10.2 105.0 1,074.9 long-term 1.9 1.9 1.9 Banks 39,220.0 45,946.2 33,323.4 short-term 3,083.7 6,102.8 7,465.5 long-term 36,136.3 39,843.4 25,857.9 Other sectors 66,938.7 49,369.7 38,118.7 short-term 7,519.3 5,690.8 4,081.7 long-term 59,419.4 43,678.9 34,037.0 Direct investments: intercompany credits 36,904.1 30,088.5 25,513.0 Liabilities before affiliated companies 2,329.1 2,458.8 3,283.5 Liabilities before direct investors 34,575.0 27,630.2 22,229.5 ----------------------------------------------------- *SA - state administration [2009-04-14]