Given the oil prices, Kazakh economy has substantial strength reserve: Samruk Kazyna official

Kuandyk Bishimbayev, Vice Chairman of the Board at Samruk-Kazyna Sovereign Wealth Fund, shared his economy forecasts with Tengrinews.kz. “Initially, oil price was expected to stand at $65 per barrel. The state budget relied on this forecast. However, the current price stands at $108 per barrel of Brent oil. There is some strength reserve. The nation may face real tough period if the price falls below $50”. Commodities are the major source to fill Kazakhstan’s foreign currency reserves. “I wouldn’t say we should expect some drastic changes. Volatility is within manageability. As a patriot of the national currency, I believe the Kazakh tenge is very stable. All the fundamentals of the national economy are well-balanced today”. When asked on best ways to keep savings, Kuandyk Bishimbayev suggested investing into shares of national companies to be floated in the Q1 2012 as part of the People’s IPO. Speaking at the Nur Otan party congress on February 11 President Nazarbayev instructed the Government to launch Initial Public Offerings (IPO) for common people before the end of 2011. The program is known as People’s IPO. According to the President, shares of Samruk-Energo (generation and transmission of electrical energy), KEGOC (national electric power grids operator), KazPost (national postal service) were going to be floated before the end of 2011. Shares of KazMunaiGaz (national oil and gas company), Kazakhstan Temir Zholy (national railway company) and KazAtomProm (national atomic company) are to be offered for the IPO in 2012-2013. According to President Nazarbayev, the IPO for the general public will enable citizens to purchase shares of the largest Kazakh companies, giving them a new tool for investments and savings.