KAZAKHSTAN'S MINISTRY OF FINANCE WANTS TO LIMIT EXTERNAL BORROWING FOR NATIONAL COMPANIES
Astana. May 14. Interfax-Kazakhstan - Kazakhstan's Ministry of Finance proposes imposing a ban on raising external borrowing for national companies, which are not part of Samruk-Kazyna or KazAgro.
Minister of Finance Bolat Zhamishev said during the "government hour" in the Majilis on Monday that the companies, which are not part of Samruk-Kazyna and or KazAgro, must be banned from attracting external financing arguing that their moderate needs could be met through offering on the domestic stock market.
The Minister of Finance also finds it necessary to set a limit on external borrowing for the quasi-state sector.
"The upper limit of borrowing for the state is 60% of GDP. This rule is defined in the CES agreement, and is applied in the international practice in accordance with the Maastricht agreements. However, not all European countries abide to the principle. We believe that this should be a ceiling both for the government borrowings and for quasi-enterprises," said Zhamishev.