ASTANA – Kazakhstan plans to attract 154.7 billion Japanese yen (US$965.4 million) in concessional loans from the International Bank for Reconstruction and Development (IBRD) and the Asian Infrastructure Investment Bank (AIIB) to support priority government measures and key areas of economic development, as the Mazhilis, a lower chamber of the Kazakh Parliament, approved relevant ratification bills.
Photo credit: gov.kz
According to Kazakh Finance Minister Madi Takiyev, the loan agreements were signed on May 20 and June 15 in line with presidential decrees, reported Kazinform on June 17.
He explained that financing is being raised in Japanese yen due to relatively low interest rates in Japan and the favorable correlation between the yen and the tenge exchange rate. The funds will be used to support priority government initiatives, including financing key sectors of the economy.
The loans are provided for an 11-year term, including a 5-year grace period, and will be repaid from the national budget.
Takiyev noted that the IBRD and AIIB are strategic partners of Kazakhstan, with the country having joined the World Bank’s IBRD in 1992 and the AIIB in 2017.
He added that Kazakhstan’s public debt remains at a safe and manageable level, in line with established debt indicators, as assessed by international financial institutions.
According to the International Monetary Fund, Kazakhstan’s economy is expected to remain resilient this year, supported by strong domestic demand, investment, and high oil prices.
