$1 billion to support small and middle-sized businesses in Kazakhstan

Baiterek State-run Holding Company is considering distributing around $1 billion through Damu Fund for Entrepreneurship to second-tier banks so that the banks could support small and middle-sized businesses, Newskaz.ru reports, citing Kanat Sultangaziyev, Vice Chairman of Damu Fund. According to him, the money is destined to support processing industries in the first place. “We are considering co-financing opportunities, with banks themselves providing half of the money under the Program”, he said, adding that the Fund was in talks with banks. February 14 Kazakhstan’s President Nursultan Nazarbayev instructed his Cabinet to allocate $5.4 billion out of the National Oil Fund [accumulating oil windfall revenues] in 2014-2015 as “long money” for the country’s economy. According to Nazarbayev, the funds should be channeled to provide loans to small and middle-sized businesses in processing industries as well as to industrialization projects. Assets of the National Oil Fund will exceed $122 billion by 2016, Newskaz.ru reported, citing the country’s Minister of Economic Affairs and Budget Planning Erbolat Dossayev as saying on the sidelines of a government sitting August 28, 2013. “With the oil revenues at the planned level, the assets of the National Oil Fund will rise from $93.9 billion in 2014 to $122.1 billion in 2016”, the Minister said when presenting the 2014-2016 draft country’s budget at that time. As of August 1, 2013 the assets of the National Oil Fund stood at $64.343 billion (11.39% up against the start of the year). The National Fund of Kazakhstan was created in 2000 as a stabilization fund that accumulates windfall revenues from oil sales and ensures the economy of Kazakhstan will be stable against the price swings of oil. The assets of the National Fund assets are monitored by the National Bank of the Republic of Kazakhstan.