Kazakhstan to return to "blue chips" program

/IRBIS, Jan.28, 00/ - REUTERS informs, with the reference to the minister of finance Majit Esenbaev, that Kazakhstan intends to implement "blue chips" privatization program in year 2000, which means sale of portions of state owned blocks of shares to portfolio and strategic investors. "It is clear, it is necessary to find an owner, an investor to receive the funds that were already built into the budget. Therefore, "blue chips" program will be implemented this year and now there are 10 enterprises for which financial advisors are being determined", he said. He said both portfolio and strategic investors were interested in these enterprises, and the final decision would be based on the interests of the state. "There are different proposals from both portfolio and strategic investors, it will depend on the terms. State interests are the priority", he said. It is said four out of ten enterprises, namely, Kazzinc, Ust-Kamenogorsk titanium-manganese combine, Aktobemunaigas and Mangistaumunaigas had to find financial advisors in the next week. The minister believes financial advisors will be assigned in the next week already. He said the advisors had to provide with their agreements, that is they should confirm their consent to be a financial advisor, and that the terms of the tender commission are suitable for them. He also said the government had to borrow $100 mln from Kazakhmys last year to pay off its external debt and social debts to the population. "Yes, we borrowed from Kazakhmys - we had significant year-end debts. We have covered the first issue of eurobonds for $200 mln, with the interest - $275 mln. We also had big social debts - we wanted to pay off our debt to retirees, on social benefits, on special state benefits. We have paid off them all", he said. He believes Kazakhmys will be privatized later. "We will return it ($100 mln), I think, our situation is normal, and if we keep going in this direction, we will also sell Kazakhmys, as it should be - to portfolio or strategic investors", he said.