ASTANA. March 10. KAZINFORM /Kanat Kulshmanov/ "The effective interest rate for troubled companies will be up to 7%", Kazakh Prime Minister Karim Massimov has said today at the plenary session of the Majilis of the Kazakh Parliament.

"A range of enterprises is unable to service debts in banks today. Banks face the situation when they have to bankrupt these enterprises and take the security interest into its management. In practice, it will lead to bankruptcy of a great number of enterprises", K.Massimov said.

In this regard, the banking community, private sector and regional Governors defined a range of projects important for the economy of every particular region.

For these enterprises banks reduce the loan burden by 12%. "5% out of these 12 percent will be spent for easing of the credit, i.e. the effective interest rate will be up to 7% for this enterprise", the Head of the Government explained.