Head of Kazakhstan for selling shares of major companies on the market
/IRBIS, March 7, 01/ - REUTERS informs that the president of Kazakhstan,
Nursultan Nazarbaev is for the selling 10-20% of shares of national
companies on the stock market, but he did not name which companies would
they be. It is said that in Kazakhstan national companies are those where the
government has 100% stake, and they are mostly natural monopolies.
He said that Kazakhstani citizens should be able to invest their money into
the best companies of the country.
The interview is published today by the Kazakhstani supplement of the
Russian newspaper Izvestiya.
The government of Kazakhstan is said to have been developing the blue
chips privatization program, which was meant to be initiate the sales of the
shares of the most attractive companies on the stock market. However,
financial crises made some corrections and officials were saying that it would
be better to sell them to strategic, not portfolio investors.
Azamat Djoldasbekov, the head of the National Securities Commission was
insisting on selling the shares on the stock market and even suggested the
country's president to sell non-blocking shares of national companies like
Kazatomprom and KazTransGas. The blue chips program is said to have
contained such companies as KEGOC (power supply), Kazakhoil,
KazTransOil (oil production) and Kazakhstan Temir Joly (railroads).
The president said that the country should strengthen its reputation as a
serous borrower, and since it has entered an economic growth stage it has
to increase the borrowing terms of the government bonds.
He said that the possibilities of issuing eurobonds for seven or ten years
denominated in U.S. dollars were being considered.
Kazakhstan has conducted four issues of government bonds for $1.2 bln, he
He mentioned that the country was among those with average income per
capita level and moderate debt.
As of Jan 1, 2001 the country's debt was at $3.89 bln, of which 84.4% is
external debt, is said.