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18.01.2000 00:00

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.