Turkey- ADB to loan Kazakhstan 1 bln to finance budget deficit


(MENAFN- The Journal Of Turkish Weekly) At today's plenary session Majilis has approved the draft law "On ratification of the loan agreement (Ordinary Operations) between the Republic of Kazakhstan and the Asian Development Bank"."The Loan Agreement between the Republic of Kazakhstan and the Asian Development bank in the amount of $1 billion has been signed in accordance with the Decree number 115 dated November 18 2015. The loan will be used to finance the budget deficit in 2016" said Finance Minister Bakhyt Sultanov presenting the bill.

According to him the loan will support the main priorities of socio-economic development of the country and implementation of strategic government measures to stimulate the economy and promote economic growth. The loan is granted with a maturity of 5 years including a 3-year grace period. The interest rate is LIBOR plus 2 percent. The commitment fee is 0.75 percent per year in untapped balance of the loan.

Servicing and repayment of the loan will be done by Kazakhstan's Ministry of Finance at the expense of the budget in accordance with the financial terms and conditions set in the Loan Agreement.


The Journal Of Turkish Weekly

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