S&P estimates

S&P estimates

Despite selling the restructured banks and the rapid growth of medium-sized banks in Kazakhstan certain risks to the stability of the industry are possible, - says the service credit rating of international rating agency S&P. The outlook on the ratings of almost all the banks in Kazakhstan is stable and reflects the balance of risks in the economy. A total of 15 banks have an S&P rating, which together with confidential ratings cover over 70% of banking sector assets. Average ratings on Kazakhstan banks are from «B» to «B +». Experts also mention the factors that lead to negative or positive rating actions. First, the weakening of capitalization, that is, in their words, if the bank's assets are growing faster than income, and shareholders do not pour capital, this may lead to the weakening of capitalization. Secondly the increase in problem and restructured loans, as well as increased credit risk and concentration. And the third is the reduction of liquid assets in connection with the seizure of large deposits. However, positive rating actions include an increase in the share capital increase with the ability of banks to absorb losses and rapid revenue growth, outpacing growth in assets with a high level of risk. Experts also noted the factors that positively influence the rating of Kazakhstan, in addition to high GDP growth, it is a serious fiscal nature reserves, as well as external surpluses, a large endowment of natural resources. One of the weaknesses of the rating of the republic is a high dependency on natural raw materials.

People’s IPO

More citizens of Kazakhstan would like to know about the implementation of the People’s Initial Public Offering state programme. According to KazInform, the People’s IPO information website has conducted a public opinion poll to find out what Kazakhstan’s citizens know about this programme. They found out that more and more citizens were getting information about the opportunity to buy shares of promising enterprises. In July 2011, the Board of Directors of the Samruk-Kazyna National Welfare Fund JSC approved a programme aimed at the placement of shares of subsidiaries and affiliated companies at the stock market. In September 2011, the programme was approved by a corresponding decree of the Kazakhstan Government. There is a list of joint stock companies, whose securities will be offered for sale until 2015. The first stage of the People’s Initial Public Offering started in Kazakhstan in December 2012, when KazTransOil JSC floated its shares. Totally, 38 million ordinary shares of KazTransOil JSC, which amount to less than 10 percent of the total amount of placed shares of the company, were sold at the Kazakhstan Stock Exchange. A total of 33,989 citizens of Kazakhstan became the first people’s shareholders. From 2013 until 2015 initial public offering of other companies with a government stake in them, is planned as a part of the state programme. These companies are KEGOC, KazTransGas, Samruk-Energo, Kazakhstan Railways National Company, KazTemirTrans, KazAtomProm and KazMunaiGas.

Egg production

Egg production in Kazakhstan since the beginning of the year has exceeded 2 billion 626 million pieces. This data has been published on the website of the Ministry of Agriculture of the Republic. Compared to last year production grew by 119 million units, representing an increase of approximately 5%.
The highest level of egg production was registered in Almaty region. On September 1, in Kazakhstan the number of poultry was close to 36 million 718,600 pieces. Moreover, the document that governs the rules of subsidizing farmers, stipulates that if a farmer wants to receive subsidies, they must increase the number of livestock.

A study Economist Intelligence Unit has shown that in 2014 the sales of food products in Kazakhstan will reach $ 24.5 billion, compared with $ 16.9 billion in 2011. In many ways, these indicators will be achieved thanks to the fact that food manufacturers are beginning to open direct sales outlets.

Indian visa

India is ready to expand the list of countries whose citizens will be able to get a visa at the airport. Business Standard reports that officials at a meeting in the Planning Commission of India have reached a decision to give such opportunity to citizens of 40 more countries, including Russia and Kazakhstan.
The countries that are now waiting for easier visa routines are also the United States, the United Kingdom, Canada, Brazil, Australia, Germany, France, Italy, Sweden, the Netherlands, Switzerland, Spain, Belgium and Austria. One of the arguments against the expansion of the list of countries was repeated statements that staff at the airport wasn’t able to cope with the influx of tourists. According to the official, "the tourism ministry has proposed to split income with the Ministry of the Interior Affairs to recruit more passport control employees at the airports." However, the officials did not mention when visa regulations would come into force. A source close to the Ministry of Foreign Affairs told ITAR-TASS that the regulations would not be enforced in the near future." In 2012, 6.58 million tourists visited India from abroad -  that is 4.3% more than the year before.



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