Banu MARAT
ASTANA, May 5 (THE GLOBE)
Inflation, according to the consumable price index for April, was 4.6%. For the first four months of the year the number was 5.1%. These were the figures announced by Kazakhstan�s Minister of Finance on May 5 in Astana.
According to Oraz Dzhandosov, the annual rate of inflation provided for by the budget was 8.9%. In his opinion, the high rate of inflation in April was caused by the devaluation of tenge.
According to Mr. Dzhandosov, the government does not expect the inflation indexes to exceed the indices stipulated in the national budget. The industrial price index for the corresponding four months was 4.7%.
Oraz Dzhandosov announced that the heads of the International Monetary Fund and the World Bank both expressed their support of the efforts that Kazakhstan had made since the Russian crisis to ensure economic stability and the continuation of reforms.
Mr. Dzhandosov said that the IMF mission is continuing its work in Kazakhstan. Two weeks after they complete their work, the IMF is supposed to begin negotiations concerning a new program to begin on July 1, 1999. The three-year program�1996 is to end this year. As was declared by Mr. Dzhandosov, simultaneously to the IMF mission, two missions of the World Bank are also currently working in Kazakhstan. One of these programs is connected with the pension reforms, the result of which will be the approval of a second credit line in the amount of US$ 100 million. The second program of the IMF mission is directed towards the support of the social reforms. According to the Finance Minister, the two sides are talking about a loan in amount US$ 200 million. If the negotiations are successful (they are to be completed in July to August), it will be possible to receive US$ 100 million in this year and US$ 100 million in the year 2000.
The Minister stated that recently he took part in the annual conference of the Asian Bank of development in Manila. The new president of the Asian Bank was given a personal letter of the Kazakh President requesting the privilege of holding the annual conference in 2003 in Almaty. The Minister said that the mission of the Asian Bank of Development is expected to arrive to our republic at the end of May. The mission is expected to evaluate the possibility of providing a loan intended to support agriculture.
Mr. Dzhandosov announced that as of today, the government has collected is 72 billion 466 million tenge in taxes in the first four months of the year. This figure is 86.4% of the respective four months of the last year, i.e. 13.6% less.
If in the last year, the fall of GNP was 2.5%, in the first quarter of this year this index was 3.5%. In the third quarter they expect a zero index, and in the fourth the economy is expected to grow. Hence, according to the prognosis of the Finance Ministry, the annual reduction of GNP will be 1.5%.
The governmental debt is US$ 3.337 billion, including US$ 871 million of internal debt and US$ 2.466 billion of the external debt. The guaranteed external debt of the government was, according to the data of the Finance Ministry, US$ 764 million.
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