Investor Presentation on Kazakhstan's Economic Reforms
COVID Response measures
Kazakhstan has unveiled a wide set of measures to curb the impact of the coronavirus. These measures were proactive
and well-targeted.
Fiscal Measures
A temporary VAT reduction for agricultural and
food products
Zero custom duties on essential imports
Business owners exempted from property tax
and land tax until December 31st 2020
Self-employed individuals exempted from
personal income tax until December 31st 2020
Oil refineries exempted from excise tax on
exported gasoline and diesel fuel until December
31st 2020
SMEs allowed to defer all taxes and other
obligatory payments until June 1st 2020
The deadline for tax declaration submission
was postponed to September 30th 2020
The penalty accrual on unfulfilled tax
obligations was ceased until August 15th 2020
Monetary and Economic Measures
Employment Roadmap program is expected to
help find jobs for over 250,000 people: KZT1tn
allocated to support employment
NBK in cooperation with the Agency for
Regulation and Development of Financial
Markets initiated a program of concessional
lending to support SMEs' working capital, the
amount will reach KZT 800bn
The Government made amendments to the
existing "Economy of Simple Things" lending
support program by increasing the financing up to
KZT1tn
Farmers got access to loans with the total amount
of KZT70bn at 5% via the "Ken Dala" program
and KZT170bn at 6% via the "Economy of Simple
Things" program available through National
Holding Kazagro. In addition, farmers were able
to finance their operations through forward
contracts (under their future harvest). Also, diesel
and other fuel types were under off-take for the
next sowing season
Under the state program "Nurly Zher", additional
support measures in the amount of KZT 390 bn
were taken to stimulate the construction and
purchase of affordable housing
Business entities received access to low-interest
loans under the rescue package
Measures to Ensure Financial Stability
The Agency for Regulation and Development of the
Financial Market implemented measures to ensure
the financial stability of the banking sector, and
reduce the debt burden of the population and
businesses:
B
Temporary credit burden relief for borrowers
A 90-day credit payment deferral for citizens
and SMEs
Countercylical regulatory measures
Support of banks' capital and liquidity in order
to maintain lending to the economy
Proactive and Forward-looking supervisory
approach based on AQR and stress-testing
results
Emphasize improvement of processes and
policies and formulate Recovery and
Resolution Plans under different scenarios
Source: National Bank of Kazakhstan, Ministry of National Economy
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