WASHINGTON, May 25, 2010 – The World Bank Board of Directors approved today a US$ 1 billion Development Policy Loan (DPL) for the Republic of Kazakhstan to provide budgetary support to the country to help it implement its current economic program.
“The new Development Policy Loan for Kazakhstan reflects a high level of confidence of the World Bank in the current direction of economic policies and reforms of the Kazakhstan Government,” – said Motoo Konishi, World Bank Regional Director for Central Asia. “Kazakhstan has other alternatives than borrowing from the World Bank. In our view, however, the current complicated state of domestic and world markets makes the option of a DPL this year quite attractive to Kazakhstan.”
The new loan supports the Government's economic program for ensuring financial stability and sustainable growth, with a particular focus on fiscal policy, budgetary management, and banking regulation. The loan has an interest rate equal to 6 months LIBOR plus variable spread, and a maturity of 25 years, including a three year grace period.
“Kazakhstan is borrowing a US$ 1 billion from the World Bank to finance the 2010 republican budget deficit, support growth, and maintain higher social commitments stipulated in the budget,” - said Bolat Zhamishev, Minister of Finance of the Republic of Kazakhstan. “We are pleased to be increasing our cooperation with the World Bank under this loan, which is another additional vehicle for constructive engagement to support program for reforming and ensuring stability and fiscal security.”
The World Bank’s overall mission in Kazakhstan is to help the Government in achieving diversified and sustainable economic growth and improving the living standards of population. To date, the Bank has provided 35 loans to Kazakhstan for the amount of more than US$ 5.2 billion since July 1992.