Issuance and repayment schedule for state securities of Kazakhstan for this week
/IRBIS, Dec 07, 99/
From December 6 to 12 on primary market for state securities of Kazakhstan:
Securities of the Ministry of Finance
� Issuance, December 6 � $3 mln, MEKAVM-6 (#25, KZ46L0806A00).
� Issuance, December 7 � 500 mln tenge, MEKKAM-3, (#253, KZ43L0903A05).
� Issuance, December 9 � 500 mln tenge, MEKKAM-3 (#254, KZ43L1003A02).
� Issuance, December 10 � 600 mln tenge, MEKKAM-6 (#112, KZ46L0906A09).
� Coupon payment, December 7 � 56.7 mln tenge (MEIKAM-3 #3, KZ31L3011991; MEIKAM-6 #1, KZ32L3011999).
� Maturity, December 9 � $15.2 mln (MEKAVM-3 #22, KZ43L0912998).
Securities of the National Bank
� Issuance, December 8 � 300 mln tenge, notes-35 (#354/n).
� Maturity, December 9 � 1,726.9 mln tenge (#/347/n, KZ95K0912990).
� Maturity, December 10 � 1,294.5 mln tenge (#/350/n, KZ8SK1012993).
Total repayment volume of state securities of Kazakhstan at 138.20 tenge per dollar is estimated at 5,178.5 mln tenge.
From December 7 shares of OJSC �SSGPO� (Kazakhstan) on non-listing trade floor of KASE
/IRBIS, Dec 07, 99/
Based on an application of the trade member of Kazakhstan stock exchange (KASE), common (trade code - SSGP) and preferred (trade code - SSGPp) shares of OJSC �Sokolovsko-Sarbaiskoe gorno-obogatitel�noe proizvodstvennoe ob�edinenie� (OJSC �SSGPO�, Rudnyi, Kostanai region) are going to be traded in �Non-listing securities� sector with the second level of admittance from December 7.
Authorized capital of OJSC �SSGPO� is 6,500,000,000 tenge (5,850,000 common inscribed shares � KZ1C10971215 and 650,000 preferred inscribed shares � KZ1P10971210, par value � 1,000 tenge). Primary activities of the company: extraction and processing of iron ore, limestone, dolomite; production and sale of rolled briquettes, concentrates, detritus, lime; production of consumer goods; organization of complex use of mineral ores, including use of lying raw materials etc.
Yield of the MEIKAM-6 #1 second coupon is 21.40% p.a.
/IRBIS, Dec.07, 99/
According to the established schedule on December 07, 1999 the Ministry of Finance of Kazakhstan should make the MEIKAM-6 of the first issue (KZ32L3011999, 182 days) second coupon payment. These securities are the state inflation indexed obligations. The redemption of the debt nominal value was conducted on Nov.30, 99.
The ������-6 fixed coupon rate is 9.00% p.a. Inflation for the last three months, according to the National Bank of Kazakhstan, is 3.1% (September -
0.7%; October - 0.7%; November - 1.7%). Taking into account these data, a full coupon compensation at the issue volume of 750 million tenges has equaled to 40,125,000 tenge, that corresponds to an actual yield of 21.40% p.a.The first �floating� MEIKAM-6 #1 coupon had an actual yield of 31.40% p.a. and was paid by the emitter on Nov.07, 99.
Full actual yield on maturity of MEIKAM-3 of third issue � 22.15% APR
/IRBIS, Dec.07, 99/
According to established schedule, on December 07 the Ministry of Finance of Kazakhstan should pay coupon interest on indexed to inflation state treasury bills MEIKAM-3 of the third issue (KZ31L3011991, 91 days). Repayment of the principal debt was made on November 25, 1999.
Fixed coupon payment of MEIKAM-3 #3 � 9.75% APR. Inflation in last three months, according to the National Bank of Kazakhstan, is 3.1% (September � 0.7%; October � 0.7%; November � 1.7%). Taking into account these numbers, total amount of coupon payment equals 16,612,500.00 tenge, which corresponds to an actual yield of 22.15% APR at 300 mln tenge issue volume.
This figure has been calculated for 91 days of circulation. If an actual number of days, which passed from the issuance date till coupon payment day (97), are taken into consideration, then yield will equal 20.78% APR.
Government of Kazakhstan committed �KazTransOil� to develop a proposal to increase oil transportation tariffs
/IRBIS, Dec 8, 99/
PRIME-TASS informs, with the reference to the source in oil business of Kazakhstan, that government of Kazakhstan committed national oil transportation company �KazTransOil� to develop a proposal to increase oil transportation tariffs and to improve current calculation methods by taking into account investment program, external financing sources and renewal of fixed assets.
Also, NOTC �KazTransOil� and national oil company �KazakhOil� should provide the government with the proof how future increase in tariffs will influence the transportation of crude oil into domestic market. In addition, companies should study influence of increased tariffs on transportation of oil by previously signed contracts on use of the resources with regard to �compensation to the government indirect losses due to changes in world oil market conjuncture�.
PRIME-TASS also says, that Kazakhstani government urged these two companies to study the business plan of building an oil pipeline West Kazakhstan-China.
The National Bank of Kazakhstan will not admit a sharp tenge rate swings - the head of the Bank
/IRBIS, Dec 07, 99/
REUTERS Agency informs about a press-conference of Grigory Marchenko, the head the National Bank of Kazakhstan.
�There will be no any sharp changes of the tenge rate over the nearest months. I am compelled to disappoint those who sits and wait, that the dollar will fast rise in price�, - has told Marchenko.
He has mentioned, that some market participants, which have the future contracts on January 1 at the rate of 150-160 tenge for dollar, want rise the dollar rate. However the National Bank considers it as a private commercial problem.
In the Marchenko�s opinion, tenge has reached in November of an equilibrium rate at 137.90 tenge for dollar against of 140.22 tenge in the previous month.
According to Marchenko, the devaluation rate in the following year will develop in
Aidar AKHMETOV
ALMATY, Dec 7 (THE GLOBE)
�As of December 1, 1999 the country�s gold and hard currency reserves increased by US$ 302.2 million and totaled US$ 1900.1 million,� National Bank chairman Grigory Marchenko announced on Tuesday, December 7 in Almaty.
Marchenko said, despite the banned obligatory sale of 50% of export revenues, in November, offers for hard currency had been significant. The National Bank replenished its reserves by US$ 116 million. Over eleven months, national inflation was 15.9%, including 1.7% in November.
According to Marchenko, since April 1999 there was a stable trend of widening monetary base by means of growing net international reserves. He said that the tenge�s rate was to comply with the inflation rate. He added: �I have to disappoint dealers as well as everyone who expects tenge fall. This will not happen.�
In November the monetary base has widened up to 96.6 billion tenge, i.e. for the month it has increased by 7.3% (10.9% - from the beginning of this year).
The National Bank chairman said that the growth of money supply had led to a raise of the monetarization of the economy. The lowest monetarization level was 8.6% (1998). In the end of the third quarter 1999 the monetarization level was 10.4%. According to the preliminary data, monetarization is expected to grow up to 11.7% by the end of this year.
Marchenko stated that in November the National Bank had agreed with the World Bank on loans, and Eurobonds had been placed successfully. This satisfied stock market demands and assisted it to adapt to the abandonment of the export revenue sale.
To regulate surplus liquidity of banks, the National Bank has issued mainly short-term bonds in tenge and stopped to issue hard currency securities. In comparison with October, in November the volume of placed hard currency securities reduced to 4.99 million tenge (4.2 times less). Today no hard currency securities circulate in the republic. Soon NB will significantly narrow securities nominated in tenge, but will increase its operation volumes in the secondary market.
At the close of the press conference, Marchenko handed a prize �for the most foolish financial article� to a Delovaya Nedelya newspaper journalist. The prize: a statuette of the ancient Indian God of Foolishness.
Gulbanu ABENOVA
ALMATY, Dec 8 (THE GLOBE)
�Buy products made in Kazakhstan!� local producers demand of their consumers. �The only way to win Kazakhstani buyers is to make quality products. To achieve this goal we have established the Quality Association. We hope that we will achieve world standards,� said Gulnar Turdalieva, President of the new Quality Association and Medeo Consulting General Director.
Kazakhstani producers introduced the new concept of the �people�s trademark�. This trademark will be granted to those producers whose high-quality products are continuously demanded by the population. The Ministry of Energy will declare results of the competition in early January 2000.
In November, members of the Quality Association initiated the event Buy Products Made in Kazakhstan. The event was to support local producers by means of large-scale education of their work to increase the competitiveness of Kazakhstani products and services.
According to Anatoly Popelyushko, Rakhat President and a spokesman of the Union of Industrialists and Businessmen, chocolates from Turkey and Germany are intended for third countries. �Products made by our companies are natural and do not contain any admixtures, according to the best western technologies,� he said.
Nevertheless, this push to emphasize local products will not affect foreign producers, the deputy of the city Akim emphasized. Its organizers did not plan to win the market by restricting the import of other products. Initiators of the event consider the societial support to be the main ingredient required to restore Kazakhstani enterprises.
Organizers called Buy Products Made in Kazakhstan a permanent national event: not just today, but everyday.
Kuanysh ZHUMANGAZINOV
ALMATY, Dec 8
(THE GLOBE)
The results of a tender for purchase of automated management system software for KEGOC will be announced on next Monday, December 13.
On November 20, 1999 the JSC KEGOC announced the tender, in which 9 Kazakhstani and foreign companies participated. The latter offered program software of different complicity, including E.R.P. system (systems of complex automation of business processes and companies� planned resources).
The closed tender was held on December 2. To participate in the tender, companies paid 3,000 tenge for information on the conditions of the tender. They also paid a 200,000 tenge guarantee fee, which will be transmitted after the tender to the account stipulated by these companies. The winner will receive the fee after it fulfills conditions of the contract.
According to current legislation, the tender commission will select as contract winner the firm with the best proposal. This will be determined after proposals of all participants of the tender have been analyzed. Previous closed tenders agreements held by state agencies have caused scandals based on biased decision-making processes.
/IRBIS, Dec.06, 99/
Last week in Kazakhstani exchange market for the dollar had a main distinctive feature: after two months of firming of tenge, exchange rate of the dollar grew from session to session. After passing one week, it can be said for sure that this is not a technical correction of the exchange rate following the prolonged fall of the dollar. A new trend has appeared in the market, which can be perceived as a long term. Average growth rate of an American currency is characterized by a trend of 19.4% APR.
There are some other features.
On three out of five trades volume of operations at KASE were minimal. These days demand for the dollars of the banks of the second tier depended on supply, which indicates wait-and-see positions of the banks. There were no outrageous events in the market.
As employees of exchange booths (EB) of Almaty point out, on Friday demand of the population for dollars in cash soared. Most likely, it was caused by payment of salaries. Increase in solvency of EB clients coincided with a growth of devaluation expectations due to recent systematic firming of the dollar in currency market of the country. For this reason dollar quotations in interbank market jumped on Friday, and on Monday, December 6, an organized and one sided demand of the banks of the second tier for an American currency was observed at KASE.
However, head of the National Bank Grigorii Marchenko, in his interview to KHABAR TV channel (its fragments will be shown in �Business-KHABAR� tonight), is not apt to dramatize the situation. He did not deny, as the dealers say, the market had found �its bottom� last week and the trend of growing American currency had to be considered long term trend. However, Marchenko emphasized on wait-and-see position of the banks and absence of outrageous situations in the market.
In Mr. Marchenko�s opinion, prolonged firming of the tenge was not accidental and was not fostered by the head bank of the country. Positive payments balance of the country stimulated formation of an excessive supply of dollars in domestic market � �a cap�, which was bought by the National Bank, thus increasing the monetary base. Further firming of the tenge with an increased up to 1.7% inflation in November is not practical. The market understood this. As a result, demand and supply got almost balanced now. The National Bank does not hinder a gradual growth in the exchange rate of the dollar, since the inflation in the US and here, when the balance is found, takes a special meaning.
Grigorii Marchenko said the National Bank would try to synchronize the inflation rate with devaluation rate in Kazakhstan during remaining time this year and next year. Now, inflation grew some, hence the dollar is going up too.
The head of the National Bank did not express concern about the possibility of transforming the current new trend into uncontrolled process. Reserves of the National Bank grow constantly. The market will be positively affected by repayment of euronotes on December 20, which is undoubted. Moreover, the World bank will grant $120-$170 mln in December, which will also replenish the reserves. The Ministry of Finance has not sold yet all the dollars received from placement and additional placement of euronotes of the third issue.
An active sale of dollars in domestic market by private structures (mainly by exporters) to get tenges to wrap up annual financial statements and settlement of contractual obligations, in Marchenko�s opinion, should be added to a row of stabilizing factors.
Summarizing all these, IRBIS specialists are inclined to assume next week dollar will continue its growth in domestic market, and devaluation rate in the first half of December will be (that is in case of absence of dollar supply from private structures) regulated by the National Bank if necessary and will hardly exceed 15- 20% APR.
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