Bank loans in the economy of Kazakhstan in 2000 - $500-600 mln - NB

/IRBIS, March 6, 00/ - REUTERS informs, with the reference to the chairman of the bank Grigorii Marchenko, that volume of bank loans in real sector of the economy of Kazakhstan may reach $500-600 mln by the end of current year if the growth rates of bank deposits of the population and that of legal entities remains the same. The chairman said their main task was to direct the inflow of deposits into financing the real sector of the economy. The National Bank informs that despite a slight decrease in financing of the banks, total amount of loans, including bank loans, grew 1.6%, at KZT151.1 bln ($1.07 bln). It is said the National Bank expects the deposits of the population to double by the end of this year up to $700-800 mln and it also expects the trust in the banks will increase as the fund of collective insurance begins to function and the law on making the banking secret more strict is adopted. Marchenko informs last year loans accounted for 45-50% of bank assets, and SS were about 10-12%, and the proportions of the currencies were even smaller. He believes the proportion of the loans should be increased up to 60% at least, though they are the major part of the bank portfolios. We can just advise them, but it is up to the banks to decide where to invest into, he said. The chairman informed demand of the banks had reached $23 mln at the last auction while the yield was only 10% APR. "The enterprises are ready to get a loan at 20% in currency, but the banks do not grant them. The banks believe risks of financing the enterprises are even higher than two times", he said. Marchenko said the Ministry of finance and the National Bank were keeping the yields low on purpose not to stimulate the participation of the banks on the stock market, but financing of the real sector is not growing fast enough. It is said financing of real sector grew 20% from October 1, while deposits grew faster than financing. We want growth rates to be at least equal, though we would be satisfied with more, he said.