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Tenge weakening, Kazakh government's debt rising

Finance Materials 21 May 2019 17:29 (UTC +04:00)

Baku, Azerbaijan, May 21

By Nargiz Sadikhova - Trend:

Compared to the previous year, in 2018 thegovernment debt of Kazakhstan increased by 25.8 percent to GDP and exceeded 15 trillion tenge, Alikhan Smailov, the Minister of Finances of Kazakhstan said, Trend reports via Kazakh media.

Smailov made the remarks during the presentation of the government's report on the republic budget performance for 2018.

“The main reason for the increase is the funding of the budget’s deficit and the weakening of the Kazakh tenge against the foreign currencies. The debt limit is on the safe level. The ratio of debt servicing and repayment expenditures to the budget’s revenue is 12.2 percent (permitted ceiling is 15 percent),” he said.

Smailov also stated that the gross international debt excluding the inter-company debt is $57.7 billion. Compared to 2017 the debt has decreased by 5.4 billion tenge.

“The permitted ceiling of the quasi-governmental sector international debt was set. In 2018 the quasi-governmental sector international debt amounted to $19.7 billion. These are the measures to support the debt stability of the country. Furthermore, the government's international debt has increased by $1 billion due to the budget’s deficit funding and the differences between currencies,” said Smailov.

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