Kazakhstan, Astana, May 15 /Trend D.Mukhtarov/
Kazakhstan needs to diversify its sources of borrowing, the deputy of the Majilis (lower chamber of parliament) Gulzhana Karagusova said.
"Kazakhstan needs to diversify its sources of borrowing to prevent debt threats to national security," Karagusova said in an interview with Trend.
In addition, the government needs to further improve the legal framework on public debt, as well as to accentuate on the targeting of the borrowed funds.
In addition, it believes the government needs to further improve the legal framework on public debt, as well as to accentuate the targeting of the borrowed funds.
Last Monday, the Minister of Finance of Kazakhstan Bolat Zhamishev said the republic occupies 36th place in the world in gross external debt in absolute terms and 43th in relation to GDP.
"Indicators of public debt are an indicator of "health" of the economy. At the same time we must not forget that the national debt has an impact on all aspects of society, not only the economy but also in politics, too," Karagusova said.
She noted that in spite of the fact that the generally accepted critical level of debt is 60 percent of GDP, the biggest "locomotives" of the world economy has exceeded this figure. Economic crisis played an important role in this in 2008, for example, Germany's national debt has tripled between 2008 and 2010.
According to international organizations Kazakhstan belongs to the group of countries with a moderate level of public debt.
She said the positive thing is that the external debt of Kazakhstan's banking sector has steadily decreased, suggesting the settlement of the debt problems of the banking system.
"Growth in gross external debt amounted to $5 billion for the last 3 years, while the debt increased annually by $10 - 30 billion for previous 5 years" she said.