Astana shadow economy worth around $4 billion

The shadow economy in Kazakhstan’s capital Astana is evaluated at 540 billion tenge ($3.97 billion), Tengrinews reports citing the Mayor of Astana Imangali Tasmagambetov as saying while addressing the city's businessmen at today's conference.

"Kazakhstan will start an amnesty of capital and legalization of property (later this year). According to the official statistics, the shadow economy amounts to 20 percent (540 billion tenge) of the city's overall economy. All these money can serve for the benefit of the country instead," the Mayor said.

The upcoming legalization of property would not be the first one in the country. The government adhered to its promises during and after the first two legalizations (in 2001 and 2006) and now it enjoys businessmen's trust. "We already have a positive experience. Not a single businessman who legalized his or her capital, was prosecuted. The point of holding a legalization campaign is to get the money to work for the benefit of our country's economy," he said.

The shadow economy in Kazakhstan’s capital Astana is evaluated at 540 billion tenge ($3.97 billion), Tengrinews reports citing the Mayor of Astana Imangali Tasmagambetov as saying while addressing the city's businessmen at today's conference.

"Kazakhstan will start an amnesty of capital and legalization of property (later this year). According to the official statistics, the shadow economy amounts to 20 percent (540 billion tenge) of the city's overall economy. All these money can serve for the benefit of the country instead," the Mayor said.

The upcoming legalization of property would not be the first one in the country. The government adhered to its promises during and after the first two legalizations (in 2001 and 2006) and now it enjoys businessmen's trust. "We already have a positive experience. Not a single businessman who legalized his or her capital, was prosecuted. The point of holding a legalization campaign is to get the money to work for the benefit of our country's economy," he said.

"However there are some drawbacks in legalization of property. Such camapigns are often accompanied by land grabs, speculation in property spikes. But we have a wealth of experience, and we will deal with this issue," he said.

The hotly debated amnesty of capital in Kazakhstan will begin in September this year.

Reporting by Asemgul Kasenova, writing by Dinara Urazova, editing by Tatyana Kuzmina

Tasmagambetov news Kazakhstan Kazakh economy Astana