BUDGET DEFICIT OF KAZAKHSTAN MADE 1% OF GDP IN NINE MONTHS OF CURRENT YEAR - THE MINISTRY OF FINANCE

/Almaty office of REUTERS, Oct.06, 99, Larisa Kokavinets/ - Republican budget of Kazakhstan has been implemented with 9.5 billion tenge deficit, which made one percent of GDP, is said in the press release of the Ministry of Finance. The budget deficit, which is planned by the government in 1999, will equal to 63 billion tenge or 3.6 percent of GDP. Today at the press conference an acting vice-premier, minister of finance Uraz Djandosov said the need in foreign loans to finance the budget deficit was $550 million. He says that on coming days Kazakhstan will receive funds from emission of eurobonds, which were placed last week for $200 million. Additional $200 million or so Kazakhstan hopes to receive as a loan from the World bank till the end of this year. By Djandosov's words, remaining $100-$150 million to finance the budget deficit is planned to get from several sources. He said the Ministry of Finance could increase the volume of borrowings on domestic market, and also place an additional tranche of eurobonds or use a syndicated loan. "If our budget will be adopted, IMF program, local investors will invest more, there is an opportunity to expand the issue of eurobonds for a certain amount, short term borrowing source can be found - a syndicated loan", said Djandosov. In case of receiving additional short term loans till the end of the year, Kazakhstan, as he says, plans to repay them next year using the next tranches of international financial organizations, and the next issue of eurobonds for about $200 million. Djandosov believes that Kazakhstan will not need to borrow this much next year, if the parliament adopts a balanced budget with the deficit 3.0 percent of GDP submitted by the government. "From the next year I don't see financing problems, because our repayment schedule (of loans) is smooth enough", he said.