Kazakhstan intends to admit securities of Russian companies to the market in the form of receipts

/Almaty bureau REUTERS, Aleksey Kalmykov, July 3, 02/ - In the Autumn of 2002 Kazakhstan intends to allow Russian companies to come to its market having issued securities in the form of Kazakhstan deposit receipts (KDR), said Chairman of the National Bank of Kazakhstan Grigory Marchenko. The biggest investors of Kazakhstan - banks and pension funds - want instruments because of intensively growing investments of population and pension accumulations in the country, where economic growth exceeds 10% during last two years. In October Kazakhstan has to redeem eurobonds issue in the amount of $350m, two thirds of which, by Marchenko's estimation, are held by domestic investors. He believes that the Ministry of finance will keep from refinancing in the West. "It is most obvious that there will be no other (eurobonds) issue, for the Ministry of finance does not need it ", - said the head of the National Bank at the press conference on Wednesday. "It is clear to all that it is necessary to form offer in rather big volume - approximately about $250m by the beginning of October in order to substitute the eurobonds, which will be redeemed by the Ministry of finance ", - he said, having added that the plan of actions, at securities market under conditions of great for Kazakhstan single inflow of means from redemption of eurborrowing, monetary authorities will prepare by September. The new for Kazakhstan KDR may become one of new instruments, which will be meant for sterilizing these means. "I believe that introduction of such the instrument as Kazakhstan deposit receipts is promising in order for Russian issuers to have a possibility to come to our market ", - said Marchenko. "It is quite possible to do it through this mechanism (KDR), and maybe in the Autumn, there will be some issues already. Three-four Russian issuers out of the number of biggest ones are interested in it ", - he added. Besides Russian issuers' securities, according to Marchenko's words, Kazakhstan holders of eurobonds which are being redeemed, most probably, will be offered government securities, bonds of the State bank of development and Kazakhstan mortgage company - daughter structure of the National Bank, created for refinancing transactions of commercial banks at mortgage crediting market. [2002-07-03]