National Bank of Kazakhstan gave a brief description of the country's loan market in January of 2000

/IRBIS, March 10, 00/ - In its press-release, devoted to current situation on financial market of the country, the National Bank of Kazakhstan gave a brief description of the loan market for January, 2000. It is said financing activity of the banks of the second tier has decreased, while total volume of loans in the economy rose 1.6% in January, at KZT151.1 bln. Refinancing rate of granted loans in national currency fell from 20.6% to 19.7%; in foreign currencies - from 20.4% to 20.1%. Significant growth in mid- and long term loans has taken place, which is mainly due to continuing growth trend in volumes of time deposits attracted and their lengths. The press-release reads: ": despite some decrease in returns of the banks on the loans, the margin between the return of granted loans and that of attracted deposits remains high. Current situation on financial market of the country shows that the banks are not much interested in financing the entities of the real sector. Although macroeconomic conditions objectively improve, banks still prefer to direct their free funds to currency market and to stock market, and to short term operations on interbank market". It is also noted that financing of the real sector of the economy by the banks in foreign currency is growing notwithstanding stable exchange rate. Volume of loans in foreign currencies rose 2.1%, at KZT81.9 bln (54.2% of all loans), or $588 mln.