Baku, Azerbaijan, Sept.11
By Nargiz Sadikhova – Trend:
The draft of the law ‘On ratification of framework agreement between Kazakhstan and the Nordic Investment Bank, which controls the work of Nordic Investment Bank in Kazakhstan’ has been approved during the plenary sitting of the Majilis (parliament) of the Kazakh Parliament, Trend reports with reference to Kazakh media.
According to the Minister of National Economy of Kazakhstan Ruslan Dalenov the framework agreement has been signed in Helsinki of Finland on October 18, 2018.
“The agreement allows for Nordic Investment Bank to start work on funding projects in Kazakhstan,” the minister said.
Nordic Investment Bank (NIB) is the international financial institution of the Nordic and Baltic countries. It is located in Helsinki, Finland. NIB was established on December 4, 1975 through an intergovernmental treaty between Denmark, Finland, Iceland, Norway and Sweden. On January 1, 2005, Estonia, Latvia and Lithuania became members of the Bank. NIB's authorized capital amounts to approximately 6.142 billion euro.
According to the strategy of NIB, some 20 percent of the loans portfolio is getting allocated to the countries, which are not its constant members. The main areas of NIB’s funding are areas such as energy, ‘green’ economy, telecommunication, transport, various areas of industry, agriculture, small and medium business.
Thus, the agreement establishes norms, which are not provided by the legislative acts of Kazakhstan.
According to Dalenov, the interest rate of the loan allocated by the bank is two percent if the borrower is the country and seven percent if the borrower is the private sector. Loans are being allocated for the period of 25 years. In his opinion, these are very attractive conditions and are compatible to conditions of other international financial institutions.
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