Kazakhstan’s President prohibits use of the National Oil Fund’s assets to finance banks

Kazakhstan’s President Nursultan Nazarbayev has prohibited to use the country’s National Oil Fund’s assets to finance second-tier banks, according to his Press Service. “Another issue heatedly discussed today is allocation of money from the National Oil Fund to finance second-tier banks. I strongly prohibit such moves. That’s final”, President Nazarbayev said when speaking at the meeting of the Council for Managing the National Fund. “Second-tier banks have a lot of other opportunities and tools to raise money and other reserves to turn to. Banks shouldn’t hope for free-of-charge capitals. Instead, they should take effort to compete”, the President stressed. According to the National Bank, the National Oil Fund’s assets as of April 1, 2013 stood at $59.806, 3.53% 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. In his State of the Nation Address [January 27, 2012], President Nazarbayev suggested the National Oil Fund money be used in the form of loans to the national economy rather than kept with foreign banks.