Efforts continue to resolve banking problems
Overview:
The Kazakh economy is growing strongly. The current account and fiscal position are benefitting from high oil prices meaning that the government continues to amass assets in the stabilisation fund. This puts the country in a good position to withstand the effects of a second leg to the global financial crisis. However, efforts continue to neutralise the consequences of the first part of the crisis on the banking sector. Three banks were taken over, had their obligations restructured and are now being prepared for sale. The banking sector as a whole is only just starting to recover. Credit growth remains muted although it has started to pick up. The authorities are trying to diversify the economy away from the oil and gas sector. Early parliamentary elections will be held in January following Nazarbaev’s re-election in April.