Central bank discloses Kazakhstan's foreign debt
Deputy Chairman of the National Bank Alpysbai Akhmetov clarified that as of 1st July 2017, the external debt of the Republic of Kazakhstan amounted to $167.9 billion. This includes 7.9% or $13.2 billion of the public sector, 3.7% or $6.2 billion of the banking sector, 25.2% or $42.4 billion - of other sectors not related to direct investment, and the remaining 63.2% or $106.1 billion is the intercompany debt.
"The external debt of the public sector has grown by $0.4 billion mainly because of the rise in the value of sovereign Eurobonds issued on the international capital markets and the upswing of demand for the National Bank's short-term notes from non-residents. The external debt of the banks [second-tier banks and Development Bank of Kazakhstan JSC] has decreased by $1.0 billion (due to the planned repayment of Eurobonds and the current external loans as well).
The intercompany debt has increased by $1.8 billion, mainly due to further financing of oil and gas projects and the growth of the debt owed to direct investors for unpaid dividends and loan fees," Mr. Akhmetov said.
According to the deputy head of the National Bank, the GDP growth and increased exports of goods and services contribute to improving the relative parameters of external debt: the ratio of external debt to gross domestic product as of 1st July 2017 was 112.4% in contrast to 119.3% at the start of the year, and the ratio of external debt to exports of goods and services was 336.6% over 375.8%.
"In H1 2017, Kazakhstan's net foreign debt has increased by $3.1 billion up to $41.2 billion, or 27.6% of GDP," Akhmetov said. He also noted that the public sector still retains the position of a net creditor for the rest of the world, while "Other sectors" and the "Banks" sector are net debtors.