BAKU, Azerbaijan, Jun. 18
By Nargiz Sadikhova - Trend:
March 2020 shock associated with lower oil prices and coronavirus spread had a negative impact on Kazakh economy, Trend reports with reference to the Kazakhstan’s National Bank.
“Under the influence of quarantine measures in Kazakhstan, as well as of national currency (tenge) weakening annual inflation exceeded the upper limit of the target corridor of 4-6 percent in May this year having amounted to 6.7 percent,” the report said.
"After raising the base rate to 12 percent to prevent external shocks, the National Bank adapted the monetary policy to the ‘new reality," the report said. "The base rate was reduced to 9.5 percent in order to maintain business activity and create more favorable conditions for lending by banks to the economy."
“To eliminate the imbalance at the local foreign exchange market, a set of measures was taken to increase the supply of foreign currency. In particular, a requirement was introduced for entities of the quasi-public sector for the mandatory sale of 50 percent of export foreign currency earnings and the transfer of foreign currency deposits to accounts in Kazakhstan banks. The regulation of exchange operations has been strengthened in order to exclude speculation. The measures taken, as well as the gradual improvement of the situation in foreign markets, helped to strengthen the tenge,” National Bank said.
Additional measures were also taken to protect the tenge assets of the population. Thus, the recommended rate on deposits in banks was increased, which delayed the growth of dollarization with minimal losses.
As part of the anti-crisis initiatives of the Kazakh president, the programs for financing the economy were adapted to the prevailing conditions during the crisis.
A concessional lending program was developed and launched to support SMEs and individual entrepreneurs affected by the emergency state. Banks have been allocated conditional contributions to replenish working capital for SMEs affected by the coronavirus spread.
In order to assist the Government in supporting jobs under the Employment Roadmap for 2020-2021, the report said.
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