Kazakhstan Takes Another Loan from the Asian Development Bank

The loan amounts to $511 million and will be used to support the government’s priority economic development measures

At a plenary session, lawmakers ratified the Loan Agreement between the Republic of Kazakhstan and the Asian Development Bank, The Tenge reports.

The loan will be provided in the amount of 3.4 billion Chinese yuan, equivalent to KZT 231.7 billion, or approximately $511.3 million (based on the official exchange rates of KZT 67.93 per yuan and KZT 453.26 per U.S. dollar). The loan term is 15 years, including a three-year grace period. The overall interest rate is 1.69% per annum. Debt servicing and repayment will be financed from the republican budget.

“These funds will help support the government’s priority measures and finance transport infrastructure, industry, education, and other key areas,” Finance Minister Madi TAKIYEV told lawmakers.

The minister emphasized that the actual debt indicators established under the Public Finance Management Concept “remain within acceptable limits.”

“Kazakhstan’s financial stability is confirmed by high credit ratings with stable outlooks from leading rating agencies. Experts from major international financial institutions assess the country’s public debt as being at a ‘moderate level,’ noting that it is manageable and supports long-term economic growth. In general, attracting concessional loans from international financial institutions, including the Asian Development Bank, is standard practice when financing measures aimed at sustaining economic growth is required,” he added.

Kazakhstan joined the Asian Development Bank (ADB) in 1994 and currently holds a 0.805% share in the institution. The total volume of investments attracted through the bank has reached approximately $8.7 billion.

Photo: XINHUA.

SHARE YOUR OPINION AND DISCUSS THE ARTICLE ON OUR TELEGRAM CHANNEL!