OREANDA-NEWS. On November 25, 2008  at a special sitting, the Kazakhstan’s Government approved a long-awaited stabilization plan to inject into the national economy a total of KZT 2.2 trillion (20% of the nation’s GDP), reported the Official website http://en.government.kz.

“The plan of concerted efforts to be taken by the Government, the National Bank and the Agency for Financial Supervision (financial market regulator) is very specific and relies on available resources… To implement the plan, USD 10 billion will be allocated out of the National [Oil] Fund, out of the 2009-2010 state budget funds, as well as out of pension accumulation funds. It is very important to ensure transparent use of the resources”, Kazakhstan’s Prime Minister Karim Massimov said.

The Prime Minister has commissioned the national Ministry of Economy and Budget Planning to elaborate within the following two weeks step-by-step guidelines of implementing the plan.

The stabilization plan will focus on five vectors defined by President N. Nazarbayev. This will be financial sector stability (USD 4 billion will be earmarked), real estate market stabilization (USD 3 billion), support to S&MBs (USD 1 billion), accelerated development of the national agriculture sector (USD 1 billion) and innovation-driven industrial projects (USD 1 billion).

The current developments at the Kazakhstan’s consumer market show that the inflation is slowing, and inflationary pressure is slackening, said Anvar Saidenov, Head of the National Bank of Kazakhstan.

According to him, the trend will proceed into 2009.

“The National Bank will be able to confine inflation to 10%, and keep the indicator within 7.5-9.5% in 2009, and within 7-9% in 2010”, A. Saidenov said.

Up to the end of this year and into 2009, the National Bank will be further pursuing its mild monetary policy, A. Saidenov said.

He noted that the Bank will take into account economic developments in 2009. Tightening of the policy is not ruled out. “This will depend on inflation trends. At the moment we forecast further inflation abatement. Under such conditions, we can focus on financial stability”, he summed up.