Astana, Kazakhstan, April
By Daniyar Mukhtarov - Trend:
China State Development Bank will issue a credit line of around $500 million to Kazakhstan Development Bank for two years, Baiterek National Holding of Kazakhstan said on April 4.
A relevant agreement was reached during the meeting between the Chairman of the Board of Baiterek National Holding JSC, Kuandyk Bishimbayev, head of subsidiaries of Kazakhstan Development Bank JSC, Askar Dostiyarov with the president of China State Development Bank, Zheng Zhijie.
The agreement was reached during the visit of a Kazakh delegation to China.
Additionally, during the upcoming visit of Kazakh President Nursultan Nazarbayev to China in May, it is planned to sign a memorandum on modernization and reconstruction of Shymkent refinery.
"The issue related to the signing of a memorandum on modernization and reconstruction of Shymkent refinery became one of the key topics during the negotiations between Baiterek holding's delegation and President of China's Export-Import Bank, Li Ruogu. An agreement in principle was reached to sign the document during the state visit of Kazakh President Nursultan Nazarbayev to China in May," Baiterek National Holding said.
The foundation of the mutually beneficial partnership between the Baiterek holding and Chinese financial institutions was laid during the state visit of Chinese President Xi Jinping to Kazakhstan in September 2013.
Memorandums on cooperation were signed with China State Development Bank and Chinese Export-Import Bank with participation of the two countries' presidents during the constituent meeting of Kazakh-Chinese Business Council timed to coincide with this event.
The cooperation between Kazakhstan Development Bank and Chinese Export-Import Bank has a systemic nature. China Export-Import Bank issued concessional loans to Kazakhstan Development Bank in 2010 for financing the investment projects such as the second phase of construction of an electrolysis plant and construction of a complex for the production of aromatic hydrocarbons at Atyrau refinery, as well as untied loans in the amount of $1.5.
Baiterek National Managing Holding was established in accordance with a decree of the Kazakh president as of May 22, 2013. The purpose for establishing the holding was to promote the development and diversification of the economy, attract investments and to improve the corporate governance system in its subsidiaries.
The holding's trust management includes 10 state financial institutions such as the Development Bank of Kazakhstan, Housing Construction Savings Bank of Kazakhstan, KazExportGarant, DAMU Entrepreneurship Development Fund, National Agency for Technological Development, Investment Fund of Kazakhstan, Kazyna Capital Management, Distressed Assets Fund, Kazakhstan Mortgage Guarantee Fund and Kazakhstan Mortgage Company.
Translated by L.Z.
Edited by C.N.