Baiterek Holding Discusses Economic Financing Issues at the National Bank

On July 23, a meeting was held at the National Bank of the Republic of Kazakhstan with the heads of second-tier banks, focusing on supporting the economy and developing the financial market. The event was attended by Deputy Prime Minister of the Republic of Kazakhstan and Minister of National Economy Serik Zhumangarin, Chairman of the National Bank Timur Suleimenov, Chairperson of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market Madina Abylkassymova, Chairperson of the Council of the Association of Financiers of Kazakhstan Elena Bakhmutova, and Deputy Chairman of the Management Board of Baiterek Holding Zhandos Shaikhy.

The Association of Financiers of Kazakhstan (AFK) brought forward for discussion issues related to the development of the capital market, the participation of Baiterek Holding in this work, the improvement of corporate bankruptcy procedures and financial rehabilitation of enterprises, as well as tax administration.

Baiterek Holding presented proposals for co-financing SMEs through the instruments of the Damu Fund and for financing large-scale projects by expanding syndicated lending mechanisms and co-financing investment projects. It also proposed enhancing cooperation with regulators, AFK, and second-tier banks to finance the real sector of the economy.

Following the meeting, the parties agreed to improve the efficiency of the Project Office and to delineate responsibilities in business lending. Baiterek Holding will focus on financing large and strategic projects worth over KZT 15 billion, as well as investment projects in mechanical engineering, construction materials production, and the agro-industrial complex.

Deputy Chairman of the Management Board of Baiterek Holding Zhandos Shaikhy noted that the key objective of the holding remains not only financing priority sectors of the economy, but also contributing to reducing inflationary pressure, import substitution, and strengthening the country’s technological independence. According to him, the target model for economic financing предполагает a mix of public and market resources, with proportions potentially shifting toward a greater share of second-tier banks.

“By financing priority sectors, we are simultaneously addressing inflation containment: the faster businesses increase domestic production and reduce dependence on imports, the less pressure there will be on prices within the country. In this regard, we plan to implement at least 15 national-level projects annually aimed at diversifying the economy, developing export-oriented production, and deep processing of raw materials,” he noted.

The parties also discussed the development of the domestic capital market, including the creation of a Securities Market Development Program, improvement of bond issuance and securitization mechanisms, and ensuring transparency in the activities of legal entities.

The meeting participants emphasized the need to strengthen joint efforts of the National Bank, the Agency for Regulation and Development of the Financial Market, the Government, and second-tier banks to finance the real sector of the economy and stimulate business activity.