Kazakhstan proposes ending predatory competition among financial institutions

Tengrinews.kz - A proposal to end the practice of "cannibalism" among financial institutions in Kazakhstan was announced by Rustam Karagoyshin, Chairman of the Board of Baiterek NUH.
He made this statement during a government meeting.

"In order to achieve the government's goal of increasing GDP to 7 percent by 2025, the holding plans to allocate about 8 trillion tenge to support entrepreneurship, develop housing construction, and implement key national and investment projects, with a further increase in funding to 10 trillion tenge by 2027. To achieve these goals, the holding requires capitalization of 1 trillion tenge annually," Karagoyshin stated.

He emphasized that business stimulation will be carried out by setting a uniform interest rate of 12.6 percent for end borrowers.

"The main goal of this initiative is to offer enterprises in the real sector a fair rate without distorting the financing market, including putting an end to the practice of 'cannibalism' among financial organizations and 'rate arbitrage'; reducing the burden on the state budget while gradually moving away from the practice of subsidization," Karagoyshin said.

According to him, supporting the economy with 8 trillion tenge in 2025 will provide an additional 1.3 percent boost to the country's GDP growth.
Earlier, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin announced that Kazakhstan will create a new credit guarantee fund for large businesses.