25 April 2011 | 19:23

Educational deposits to appear in Kazakhstan by 2015

Bakytzhan Zhumagulov. Photo by Yaroslav Radlovskiy©

According to Bakytzhan Zhumagulov, Minister of Education and Science, Kazakhstan should transit to a new system of educational savings deposits in the nearest two years, Vremya reports. “The state-backed educational saving system will be introduced as part of the state-run Education Development Program for till 2015. All Kazakh citizens will have an opportunity to save money for their children's education. Government will offer incentives. Mechanisms have already been worked out, now actuarial calculations are being made,” the minister said. Depositors won't be able to cash out their educational savings funds, the Ministry explained. The money will be transferred by the depositor' bank directly to the university chosen by the student upon submission of a copy of the agreement between the university and the student. The depositor will be allowed to withdraw the educational money from the bank, but this would mean a loss of the annual premium offered by the state in the amount of 5 percent annual interest. The process will be controlled by Financial Center JSC, an entity under the Education Ministry’s umbrella. All second-tier banks will be taking part in new educational deposits system. The information on creation of the new saving system was floated in the end of February. The goal of the project is to provide opportunities for all the parents to deposit money for their children's education in any second-tier bank. The new educational account’s only major difference from other savings accounts is that this account will be meant to pay education fees only.

According to Bakytzhan Zhumagulov, Minister of Education and Science, Kazakhstan should transit to a new system of educational savings deposits in the nearest two years, Vremya reports. “The state-backed educational saving system will be introduced as part of the state-run Education Development Program for till 2015. All Kazakh citizens will have an opportunity to save money for their children's education. Government will offer incentives. Mechanisms have already been worked out, now actuarial calculations are being made,” the minister said. Depositors won't be able to cash out their educational savings funds, the Ministry explained. The money will be transferred by the depositor' bank directly to the university chosen by the student upon submission of a copy of the agreement between the university and the student. The depositor will be allowed to withdraw the educational money from the bank, but this would mean a loss of the annual premium offered by the state in the amount of 5 percent annual interest. The process will be controlled by Financial Center JSC, an entity under the Education Ministry’s umbrella. All second-tier banks will be taking part in new educational deposits system. The information on creation of the new saving system was floated in the end of February. The goal of the project is to provide opportunities for all the parents to deposit money for their children's education in any second-tier bank. The new educational account’s only major difference from other savings accounts is that this account will be meant to pay education fees only.

student Ministry of Education and Science Kazakhstan Kazakh Education deposits bank Bakytzhan Zhumagulov