Tokayev urges banks to support infrastructure development and economic growth

Tengrinews.kz - President of Kazakhstan Kassym-Jomart Tokayev addressed the country’s banks.

The Head of State emphasized that bank resources should be utilized to implement programs for the construction and modernization of major infrastructure projects.

"It is necessary to gradually redirect state-allocated funds towards subsidizing loan interest rates. This will significantly expand financing coverage and effectively involve bank liquidity in economic circulation," Tokayev said at an extended government meeting.

The President reminded attendees that from 2017 to 2020, several large banks received state support under terms of shared responsibility with their shareholders, including funds from the National Fund, with a 15-year repayment period.

"Some banks have already covered all their losses but continue to hold onto state-owned funds. Moreover, they are earning guaranteed profits by investing these funds at high interest rates in risk-free government instruments. The government and the National Bank are instructed to make a decision on this matter. I want to emphasize that banks are by no means enemies of the government, let alone the people, but there must be fair partnerships based on dialogue. At one time, you were helped—now it’s your turn to reciprocate. And let me remind you, the help provided was significant, involving large, enormous sums," Tokayev stated.