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Kazakhstan to lift restrictions on foreign capital investments in communication companies

ICT Materials 19 November 2013 17:07 (UTC +04:00)
After Kazakhstan’s accession to the World Trade Organization (WTO), the 49 per cent limit on foreign capital in communication companies will be lifted.

Astana, Kazakhstan, Nov.19

By Daniyar Mukhtarov - Trend:

After Kazakhstan's accession to the World Trade Organization (WTO), the 49 per cent limit on foreign capital in communication companies will be lifted, the Minister of Economic Integration Zhanar Aytzhanova said speaking at a government hour in the Majilis (The Lower House of Parliament) on Nov.19.

"2.5 years from the date of Kazakhstan's accession to the WTO, the 49 percent limit on foreign capital in companies rendering long-distance and international communications services will be lifted," Aytzhanova said.

Thus, according to the minister, there will be open access for investments from foreign telecommunication companies in these spheres. Nevertheless, the 49 percent limit will be maintained in Kazakhtelecom after the country joins the WTO.

"Additionally, five years after Kazakhstan's accession to the WTO, it will be allowed to construct direct branches of foreign companies and insurance organizations," Aytzhanova added.

Aytzhanova believes that in order to ensure the stability of the financial market, Kazakhstan has created special mandatory conditions the implementation of which is necessary for foreign companies. The requirements were imposed with regard to minimal volumes of assets of parent banks and insurance organizations, the population deposits.

"As a result of liberalization plan in telecommunications sector and financial services, the aforementioned measures will contribute to the improvement of quality of these services and decrease of their cost for consumers," Aytzhanova summarized.

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