ADB, Kazakhstan Sign Agreement to Support Industry, Banking, Small Business

AgreementASTANA – President of the Asian Development Bank (ADB) Takehiko Nakao signed a new framework agreement on co-financing with Prime Minister of Kazakhstan Karim Massimov on May 4 at the opening ceremony of the 47th Annual Meeting of the ADB Board of Governors in Astana. According to the agreement, signed in the presence of Kazakh President Nursultan Nazarbayev, the ADB will help Kazakhstan effectively use $5.5 billion from its National Fund to support industrial policy, small and medium-sized enterprises and the banking sector.

President Nazarbayev recently announced a programme allocating 1 trillion tenge ($5.5 billion) from the National Fund of Kazakhstan to support industrial policy, small and medium-sized businesses and the banking sector. Under the new framework agreement on co-financing, the ADB will support the government in the implementation of development programmes by providing efficient and effective use of these funds.

“This framework agreement is built on the successful 20-year partnership between ADB and Kazakhstan, with an emphasis on diversification of the economy, sustainable development and inclusive growth,” said Nakao. “We look forward to further strengthening our cooperation to promote economic diversification and competitiveness.”

Currently, the ADB is a leading development institution in Kazakhstan. Since 1994, it has provided a total of $3.2 billion for 25 public sector loans, $31 million for 68 technical assistance projects and $455 billion for six private sector projects.

Under the current Partnership Strategy with the country, the ADB investment programme allocated $1.6 billion to the public sector for addressing financial sector issues, small and medium-sized enterprises, infrastructure, private sector development, regional cooperation and integration. The ADB complements this programme by investing in private sector operations through participation in equity and debt instruments for debt regulation and provision of guarantees.

Kazakhstan hosted the ADB’s Annual Meeting of the Board of Governors in its capital for the first time from May 2-5. This meeting’s theme was, “The Silk Road: Connecting Asia with a Changing World.” The meeting brought together more than 3,000 delegates, including leading politicians, prominent businessmen, media representatives, academics, civil society and representatives of development institutions.

The aim of the ADB, the headquarters of which is in Manila, is to reduce poverty in the Asia and the Pacific region through inclusive economic growth, environmentally sustainable development and regional integration. The ADB was established in 1966 and consists of 67 member countries, with 48 countries from this region. In 2013, the ADB’s portfolio amounted to $21 billion, including co-financing amounting to $6.6 billion.

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