WASHINGTON, May 25 (Reuters) - The World Bank said on Tuesday it had approved $1 billion in budget support for Kazakhstan to help the government implement its economic program.
The development policy loan will help shore up the government's economic program by focusing on fiscal policy, management of the budget and banking regulation, the Washington-based institution said in a statement.
'Kazakhstan is borrowing $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, Kazakhstan's minister of finance, in the statement.
The loan has an interest rate equal to 6-month LIBOR plus variable spread, and a maturity of 25 years, including a three year-grace period.
Motoo Konishi, World Bank regional director for Central Asia, said approval of the loan reflects confidence by the bank in the 'direction of economic policies and reforms of the government.'
The resource-rich central Asian nation has forecast gross domestic product will increase between 1.5 and 2 percent this year, up from 1.1 percent in 2009. The economy is on the mend after being hard hit but the global economic downturn and slump in commodity prices last year.
(Reporting by Lesley Wroughton; Editing by Kazunori Takada) Keywords: WORLDBANK KAZAKHSTAN/ (lesley.wroughton@thomsonreuters.com +1-202-898-8317; Reuters Messaging: lesley.wroughton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The development policy loan will help shore up the government's economic program by focusing on fiscal policy, management of the budget and banking regulation, the Washington-based institution said in a statement.
'Kazakhstan is borrowing $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, Kazakhstan's minister of finance, in the statement.
The loan has an interest rate equal to 6-month LIBOR plus variable spread, and a maturity of 25 years, including a three year-grace period.
Motoo Konishi, World Bank regional director for Central Asia, said approval of the loan reflects confidence by the bank in the 'direction of economic policies and reforms of the government.'
The resource-rich central Asian nation has forecast gross domestic product will increase between 1.5 and 2 percent this year, up from 1.1 percent in 2009. The economy is on the mend after being hard hit but the global economic downturn and slump in commodity prices last year.
(Reporting by Lesley Wroughton; Editing by Kazunori Takada) Keywords: WORLDBANK KAZAKHSTAN/ (lesley.wroughton@thomsonreuters.com +1-202-898-8317; Reuters Messaging: lesley.wroughton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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