National Bank of asks Ministry of finance to renew regular GS issuing in 2003-2004 - National Bank's head

/Kazakhstan today, May 30, 03/ - National Bank of Kazakhstan has sent a letter to the Ministry of finance "with the request to examine the question about regular issuing of government' securities during this and the next year ". Chairman of the National Bank of Kazakhstan Grigory Marchenko informed a correspondent of KZ-today about it during interview. The National Bank's head has noted that regular issuing of GS is necessary" both as object of investments for pension funds and second tier banks, and, first of all, as creation of standard securities (bagemark) as well", in order top provide Development Bank of Kazakhstan, Kazakhstan mortgage company or corporate bonds of private companies" with orient to the level, which securities of the Ministry of finance determine". Marchenko noted that the National Bank "would like GS issues to be made within the whole range - from three months to ten, and in the future 15 years". In the opinion of the National Bank's head, GS "are important not only for financing budget's deficit, but also as standard securities so that issues of corporate and mortgage bonds be able to compare with them". At that, Marchenko noted that "GS issue for the Ministry of finance can be made only in the volume of budget's deficit". Besides, Marchenko commented on policy concerning issue of short-term notes of the National Bank: "We buy them in order to tie tenge mass, which appears while purchasing of dollars at domestic market". The National Bank's head noted that "if inflow of dollars to domestic market continues, we will conduct interventions and tie this mass due top notes issuing". At the same time Marchenko noted that issue of notes is "additional expenses, which do not arouse our gladness". However, he thinks "it's objectively necessary in order for stability at financial markets ". "If keep from tying tenge mass it may cause inflation growth", - he explained having explained that "we are still able to cope with this task". [2003-05-30]