BAKU, Azerbaijan, Aug.13
By Nargiz Sadikhova - Trend:
Kazakhstan’s Development Bank (DBK) has promptly developed and implemented an anti-crisis plan consisting of preventive and comprehensive measures, Deputy Chairman of the Management Board Duman Aubakirov said, Trend reports with reference to DBK.
Aubakirov noted that the DBK's anti-crisis strategy was based on the experience gained in 2008 and 2014-15.
“The crisis caused by the COVID-19 pandemic has brought many problems: the pace of production of many projects has decreased, while required specialists from other countries were not able to physically attend the projects due to the closure of borders. The cost of debt capital has increased with high capital intensity of projects,” he said.
He noted that in order to reduce the negative impact of the pandemic on the Bank's projects and financial stability, DBK has promptly developed and implemented an anti-crisis plan consisting of preventive and comprehensive measures.
The plan main measures include restructuring of foreign currency loans of borrowers, which is carried out depending on the availability and receipt of appropriate preferential funding in the national currency, deferred payments on the principal debt and interest, and cancellation of penalties for late performance of financial and non-financial obligations.
At the moment, intensive work is being carried out with all interested parties on most of the points of the plan, the implementation of which requires coordinated actions of all participants – the Development Bank, government agencies and enterprises.
The plan is regularly updated and amended as necessary to reflect the situation and occurring changes.
Performance efficiency of the Bank has not changed due to the transition to a remote work, including projects that are financed without the physical presence of borrowers. Thus, according to the results of the first half of the year, the Bank financed large investment projects in the amount of 176.3 billion tenge ($421.7 million).
"The Bank regularly conducts systematic monitoring of both the epidemiological and socio-economic situation in the country and the world. All necessary measures are being taken to mitigate the consequences of the pandemic for the Bank's customers and employees. As necessary, these measures are reviewed and supplemented," Aubakirov added.
Development Bank of Kazakhstan JSC (DBK) is a National Development Institute for the modernization and development of non-resource and infrastructure sectors of the economy of Kazakhstan, established in 2001.
Main activities: development of production infrastructure and manufacturing industry, promotion and attraction of foreign and domestic investment in the country's economy.
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