INTERVIEW - Kazakhstan will offer to stock market new instruments

/REUTERS, Astana, Raushan Nurshayeva, March 20, 06/ - In autumn of this year Kazakhstan's government plans to offer to pension funds new financial instruments on the base of several national companies' shares, and intends to engage world auditors for solution of possible "disputes" with transnational companies working in Kazakhstan's extractive sector. Karim Masimov the vice-premier said to Reuters about it. Kazakhstan recently founded Samruk the state holding, where now shares of 5 national companies concentrated such as - Kazmunaygas, Kazakhtelecom, Kazakhstan temir zholy, Kazpost and KEGOK. "These will be bonds, various bonds, in other words we will hold a complex of measures. But we must not delay it (stock market development)", - Masimov said. "The matter in case is not to loose state control,.. financial instruments on the base of shares (of national companies) will be exhibited", - he added. Pension funds of Kazakhstan complain about absence of high-liquid instruments for investing on the background of government's attempts to start a full-fledged stock market. "The government has been given exact orders (by country's president) - development of the stock market, appearance of new instruments... This will occur, probably in September-October of this year - exhibition of shareholdings of national companies, first of all, for pension and mutual funds", - he said. "DUSPITES ARE NEEDED" During latest years Kazakhstan considerably toughened tax load for new oil and gas projects. "I think in some moment we overpressed a bit, but now, I think, there is a balance of interests. The question of reduction of tax burden is irrelevant at present", - he said. "Believe, all big oil companies - American, Chinese, Russian and so on - they all knock at our door", - the vice-premier said. "Our firm question is stability of contracts". "Finance ministry's funds will be given so that it be possible to hire an international company, which works with such transnational corporations in the world", Masimov said. "Sometimes we have lack of qualified language to argue with them, because no matter what contract is like, there are always questions, where it's necessary to argue and we should argue. And do it so that it doesn't seem that government worsens investment climate", - Masimov said. Oil and gas projects in Kazakhstan are realized with participation of such international companies as Chevron, ExxonMobil , BG , Eni , Shell etc. "We must positively use advantages of globalization, so that American company to argue with American companies", - Masimov. [2006-03-20]