TOTAL DEBT OF KAZAKHSTAN, DENOMINATED IN SS, AS OF JANUARY 1, 00 REACHED USD1,437.3 MLN - IRBIS

/IRBIS, Jan.18, 00/ - Information agency for financial markets IRBIS (Almaty) has finished an analysis of the data that allow to get accurate figures of Kazakhstan's internal and external debt, which are circulated as state securities (SS), for the beginning of 2000. Unlike in previous years, this task was complex, since part of SS that are in circulation were converted into AVMEKAM and special currency notes of the National Bank when free floating exchange rate of the tenge to U.S. dollar was introduced on April 5, 1999. Moreover, indexed by devaluation SS have emerged in the market (AVMEKAM, special currency notes, currency notes, MEKAVM), which should be compared with non-indexed SS at current exchange rates. All the data, presented below are not official statistics, but were obtained by an analysis of the IRBIS agency's database and that of Kazakhstan stock exchange (KASE). The latter is made daily by these organizations based on first hand information of the following sources (Ministry of finance, National Bank, National securities commission and Central depository). In addition, these databases are the basis for entering the information on securities in Trade system of KASSE, and the System of pension assets monitoring of NSC. Therefore, the smallest errors that can be made upon forming the databases will be detected by the subjects of the market or by software within a very short time. When obtaining the data in U.S. dollars all calculations were made at official exchange rate of this currency towards tenge, effective on the last date of the period. Cost of the debt is given in nominal terms without servicing cost of the end of the period: (in mln USD) ----------------------------------------- ----- ----- ----- ------- ------- Type of SS 1995 1996 1997 1998 1999 ----------------------------------------- ----- ----- ----- ------- ------- Euronotes of Kazakhstan 0 200.0 550.0 550.0 625.0 МЕАКАМ (under the National Bank's control) 0 0 0 439.7 249.2 Domestic SS of the Ministry of finance 87.9 181.0 341.8 442.1 517.4 SS of municipal executive bodies 0 0 0 0 7.8 Domestic SS of the National Bank 49.4 71.5 90.7 143.7 37.9 TOTAL 137.3 452.5 982.5 1,575.6 1,437.3 including external debt: 0 200.0 550.0 550.0 625.0 including internal debt: 137.3 252.5 432.5 1,025.6 812.3 including total internal debt of the Ministry of finance, including municipal: 87.9 181.0 341.8 881.8 774.5 including total internal debt of the Ministry of finance without МЕАКАМ: 87.9 181.0 341.8 442.1 525.3 including total debt of the National Bank: 49.4 71.5 90.7 143.7 37.9 Given breakdown of SS takes into account the following: - MEAKAM - ten year SS of the Ministry of finance of Kazakhstan - are under the control of the National Bank, and therefore, are not completely the Ministry of finance's debt for which real money should be paid. The securities are sold by the National Bank to other investor on repo terms, that is, with the obligation to buy them back. - SS of municipal executive bodies, actually, are not the Ministry of finance's debt, however, this is a budgetary debt, controlled by the Ministry of finance. - Domestic SS of the National Bank - notes - super short debt, whose volume varies widely. These SS are issued to normalize the money circulation and are not meant to cover state budget deficit of Kazakhstan. As it follows from given data, in 1999 total debt of Kazakhstan at circulation decreased 8.8% in dollar terms. External debt (euronotes of Kazakhstan) rose 13.6%, and internal decreased 20.8%. But this is in terms of dollars. Internal debt, expressed in terms of tenge, is given in the following table. All currency papers, which were in circulation as of January 1, 00, were converted into tenges at par value at an official rate, effective on that date (KZT138.20 per dollar). (in bln tenges for the end of the period, unless otherwise specified) ------------------------------------------------------------------------ 1998 1999 -------------- -------------- Emitter Type of SS bln KZT % bln KZT % ------------------- ---------------- -------- ----- -------- ----- Ministry of finance МЕАКАМ 36.850 42.9 34.441 30.7 Ministry of finance АVМЕКАМ 33.734 30.0 Ministry of finance МЕОКАМ-24 1.542 1.8 0.021 0.0 Ministry of finance МЕКАВМ-12 1.650 1.5 Ministry of finance МЕККАМ-12 6.052 7.0 3.137 2.8 Ministry of finance NSB 1.050 1.2 0.170 0.2 Ministry of finance МЕКАVМ-9 1.358 1.2 Ministry of finance МЕКАVМ-6 10.179 9.1 Ministry of finance МЕККАМ-6 12.557 14.6 11.058 9.8 Ministry of finance МЕIКАМ-3 0.100 0.1 Ministry of finance МЕККАМ-3 15.845 18.4 10.101 9.0 Executive body Almaty 0.452 0.4 Executive body Astana 0.150 0.1 Executive body Mangistau region 0.479 0.4 NB of Kazakhstan Notes of NB 12.046 14.0 5.231 4.7 ------------------- ---------------- -------- ----- -------- ----- TOTAL 85.942 100.0 112.262 100.0 -------------------------------------- -------- ----- -------- ----- including total internal debt of the Ministry of finance, including municipal: 73.896 86.0 107.031 95.3 including on currency SS: 48.003 42.8 including on tenge SS: 73.896 86.0 59.028 52.6 including total internal debt of the Ministry of finance without МЕАКАМ: 37.046 43.1 72.590 64.7 including total municipal debt: 1.081 1.0 including total debt of the National Bank: 12.046 14.0 5.231 6.1 -------------------------------------- -------- ----- -------- ----- As it follows from given data, in 1999 internal debt of Kazakhstan at circulation as SS grew KZT26.3 bln or 30.6% if recalculated in tenge.