Investor Presentation on Kazakhstan's Economic Reforms slide image

Investor Presentation on Kazakhstan's Economic Reforms

COVID-19 Response Measures The government's supportive measures to limit the impact of the crisis showcase the effectiveness of decision-making as well as demonstrate the resilience of the economy. Government has been swift and effective in responding to the crisis March 13th First cases of COVID-19 identified in Kazakhstan. All public events suspended. March 23rd KZT4.4tn (US$10bn) anti-crisis package announced, excluding tax reliefs and local support measures. April 29th June 15th March 11th WHO characterizes COVID-19 as a pandemic March 16th-31st State of emergency declared. Kazakhstan went into strict lockdown, closing the borders and suspending domestic travel. Up to 70% of public and private sector employees were transferred to remote work, with the exception of life support enterprises, security, law and order, and mass media. Schools and universities switched to online learning. First social cash payments in the amount of KZT 42,500 (c. US$100) per person assigned to 4.3mn citizens, in connection with the loss of income during the lockdown. April 20th Three infection hospitals were built in the three largest cities. May 11th - 25th Additional grace period on principal amount and interest at least for 90 days for SMEs affected by the pandemic situation from Jun 16 till Sep 15 2020. End of the state of emergency on 11 May and gradual lifting of lockdown measures across the country, including re-opening of public transportation, shops, restaurants etc. July 5th August 17th - 31st Gradual lifting of lockdown measures, including re- opening of public places on working days. The second lockdown introduced across the whole country after spike in daily cases of COVID. Lockdown measures are less severe than the ones during March-May. The Spread of the Virus has been Contained (COVID-19 daily cases) 12,000 10,000 8,000 6,000 4,000 2,000 0 13-Mar 13-Apr 13-May 13-Jun 13-Jul 13-Aug 13-Sep 13-Oct Source: WHO, Public Sources, Government of Kazakhstan 3 The Government is Well Positioned to Contain The Crisis Kazakhstan entered the crisis in a strong position, with low government debt reflecting its strong track record of fiscal prudence and good macroeconomic fundamentals. It has more fiscal space and is better positioned to withstand the global shocks than most of its peers ° The government and NBK have taken proactive and well-targeted measures to mitigate the impact of the shocks on the local economy. Measures announced in April include a KZT 5.9tn fiscal package and programmes of preferential lending to SMEs, excluding temporary prudential regulation relief to support business lending, easing banks' capital and liquidity, postponement of loan repayments for SMEs and general public and households During the second revision the government redrafted its 2020 Budget by increasing oil price assumption from $20/barrel to $40/barrel. For the medium term (2021-2025), a more conservative oil price at $ 35 per barrel was taken.
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