Galymzhan Tajiyakov: “Baiterek” Holding makes a significant contribution to the development of the financial sector of the country”

12.11.2018

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On the eve of the National Currency Day, as well as the professional holiday of financiers, the Deputy Chairman of the Management Board of the Holding Galymzhan TAJIYAKOV told about the significance of this remarkable date in the history of the country and the achievements of “National Managing Holding “Baiterek” in the financial field in an exclusive interview with Kazakhstanskaya Pravda.

 

Tenge - economic sovereignty

 

Galymzhan, you have experience in the banking field and corporate governance, currently you are one of the leaders of “Baiterek” Holding. What does professional holiday mean for you as a financier?

 

- Citizens of independent Kazakhstan saw for the first time the national currency - tenge on November 15, 1993. And now, for a quarter of a century, the National Currency Day is a special holiday, embodying a new stage in the development of our statehood. It is no coincidence that this day is the professional holiday of all the employees of the financial system of the country, which for 25 years has come a long way of formation and development.

The creation of a national currency has become an important component of Independence, ensuring economic sovereignty. Thanks to the long-sightedness of the Head of State Nursultan Nazarbayev, it was successfully put into circulation and continues to fulfill fundamental mission to the present.

Being a financier - a banker in the third generation, for me personally, November 15 is a special day. And on the eve of this anniversary, I congratulate all my colleagues on this holiday; I wish you success, prosperity and new professional achievements.

 

Baiterek” Holding is the main financial agent of the Government. What contribution does the Holding make to the development of the country's financial sector?

 

- The activity of the Holding is aimed at promoting of sustainable economic development of the country through finance and support providing to the priority sectors of the economy. In particular, the company’s portfolio includes two development institutions that have the status of banks – “Development Bank of Kazakhstan” JSC and “Housing Construction Savings Bank of Kazakhstan” JSC.

Thus, the Development Bank of Kazakhstan finances long-term projects in the manufacturing industry. In the first half of 2018, the loan portfolio of DBK amounted to 1.6 trillion tenge, having increased more than four times since the establishment of the Holding. Thus, the share of Holding's loans in total long-term lending to the industrial sector was 47%. In other words, almost every second tenge of a long-term loan in industrial projects is the holding's funds.

At the same time, the HCSB stimulates the development of the mortgage market by providing of concessional housing loans to the population. Over the entire period of activity, the bank granted more than 160 thousand loans in the amount of over 1 trillion tenge. Thus, according to the results of the first nine months of 2018, HCSB has granted the loans amounted to 231 billion tenge, or 63% of the total mortgage lending in the country. Also Housing Construction Savings Bank is in the lead among second-tier banks in long-term deposits - today its share is 28.5%.

I would like to note that the financial instruments of such subsidiaries of the Holding Company, as “EDF “Damu” JSC and “MO “Kazakhstan Mortgage Company” JSC, also contribute to the development of the country's financial sector.

Thus, “Damu” Fund is engaged in financing of small and medium businesses, subsidizing of interest rates and guaranteeing. Thanks to the Fund’s instruments, long-term loans were granted in the amount of more than 200 billion tenge, which was 38% of the total number of loans in the country.

In turn, Kazakhstan Mortgage Company was identified as the operator of the implementation of the state program “Nurly Zher”. KMC stimulates the development of the mortgage market through the repurchase of mortgage loans of second-tier banks. From the beginning of the KNC activity in the third quarter of 2018, 64 thousand mortgage loans were repurchased for the amount of more than 221 billion tenge.

 

Read the full interview here