Kazakhstan's domestic debt up $2.5 billion in one day 08 ноября 2014, 18:01
- Found a bug?
- Select it and press Ctrl + Enter
Kazakhstan’s debt in government securities (GS) has grown by $2.5 billion in one day, Tengrinews reports citing the Kazakhstan Stock Exchange (KASE).
The debt reached a new maximum on October 30. According to KASE, the domestic debt is now at 4.7 trillion tenge or about $26.2 billion. At the same time, the total market value of government bonds traded on KASE made about $24.3 billion as of September 30.
According to the head of research department of JSC Private Asset Management Damir Seysebayev, the growth of the domestic debt in government securities results from two euroissues of the Ministry of Finance totaling $2.5 billion.
In mid-October, the Ministry of Finance issued two types of Eurobonds to close Kazakhstan's budget deficit: 10-year bonds worth $1.5 billion and 30-year bonds worth $1 billion. After the euroissues it was reported that Kazakhstan's external debt rose by $2.5 billion.
The previous historical maximum in government debt was reached in February 2014. On February 3 the government debt reached $23.641 billion (about 3.6 trillion tenge). The National Bank of Kazakhstan announced a nearly 20% devaluation of the tenge on February 11 and Kazakhstan’s domestic debt was reduced. Since payments on government bonds are made in tenge, the public debt in tenge stayed the same, but it fell in dollar value.
By Dinara Urazova