NSC expects that the market of the bonds will not diminish in 2001

/IRBIS, Dec.26, 00/ - REUTERS informs, with the reference to the head of the National Securities Commission of Kazakhstan, Azamat Djoldasbekov, that the NSC expects that the market of corporate bonds will remain at the levels of 2000, when issues amounted to more than $110 mln. Some issuers have already presented their issue prospectuses to the NSC, he added. As he notes, the "bond boom" that happened this year, was mainly due to the measures taken by the government, which obliged major companies to participate in the listing of the Kazakhstan Stock Exchange. The brokers, who were idle since 1997, became the managers of the bond issues, pension assets management companies received an interesting financial instrument and the issuers were able to borrow more and lengthy money at quite low rates, he noted. Such companies as Kazakhoil, KazTransOil, Kazakhstan Temir Joly and others have already placed their bonds this year. As of December 1, 2000, pension assets management companies have invested $82.366 mln into corporate bonds, or 18.42% of all invested pension assets of 14 private pension funds. As of January 1, 1999 this figure equaled $6.003 mln, informs the agency. Djoldasbekov did not exclude that the Kazakhstani economy may not be ready to offer quality financial instruments for the pension funds, which are the major players on the stock market, is said. It is said that the assets of pension funds have exceeded $744 mln already, and expected to exceed $1 bln soon. The head of the NSC believe that the government should stimulate the companies with remaining state ownership, as well as become more "aggressive" seller of the shares from the state blocks. Pension assets management companies have the rights to invest pension assets into government bonds and highly liquid securities, deposits of high grade banks, and other riskless instruments, is said. He said that in case of the Kazakhstani economy's inability to balance the mass of pension assets with adequate issue of financial instruments, foreign securities will be used as an alternative to ease the situation.