Kazakhstan Adopts $10 Billion Stabilization Plan For Economy

Kazakhstan Adopts $10 Billion Stabilization Plan For Economy
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Τρι, 25 Νοεμβρίου 2008 - 20:16
Kazakhstan on Tuesday agreed to a $10 billion crisis plan aimed at protecting its once booming economy from the worst effects of the global economic slowdown.
Kazakhstan on Tuesday agreed to a $10 billion crisis plan aimed at protecting its once booming economy from the worst effects of the global economic slowdown.

"The stabilization plan for the economy and the financial sector for the years 2009-2010 has been approved," the office of Kazakh Prime Minister Karim Massimov said in a statement.

The plan is funded largely by a national fund of surplus oil revenue harvested earlier this year when the price of crude hit a record high.

Under the plan, $4 billion will go to the country's four main banks in exchange for the state receiving a 25% stake in each. Another $3 billion will go to the embattled construction sector.

The rest will be spent on small business and infrastructure projects.

The Kazakh economy has enjoyed growth rates of up to 10%in recent years, but, like its ex-Soviet neighbors, it has been hit by the credit crunch as well as the fall in oil prices.

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