Kazakhstan, Astana, Oct. 1 /Trend, D. Mukhtarov/
In order to achieve GDP growth of seven percent, Kazakhstan needs to attract an additional $80 billion in investments over the next seven years, director of McKinsey Global Institute Richard Dobbs said in Astana on Tuesday.
"In order to achieve GDP growth of seven percent, Kazakhstan needs to attract additional investments worth 80 percent from 2013 to 2020, which is equivalent to $10 billion a year," Richard Dobbs said at the second session 'Improving the funding model of the industrialization programme of Kazakhstan', which was held by JSC National Management Holding Baiterek.
The expert believes that these investments should come from the domestic private sector and inflow of foreign direct investments.
"The experts do not envisage a substantial increase in government involvement in the economy, because effective functioning of the private sector and small and medium-sized businesses is necessary in order to ensure long-term growth," he said.
According to him, the development of the financial sector is an important condition for the receipt of investments in Kazakhstan's economy.
"For this, it is necessary to solve one of the major problems of the banking system of Kazakhstan - the extremely high level of non-performing loans (NPL)," he added.
As of early 2013, the share of non-performing loans in BTA bank was 84.9 percent, ATF bank - 36.2 percent, Alliance Bank - 34 percent, the statistics of the Committee for the control and supervision of financial market and financial organizations of the National Bank of Kazakhstan said.