We and IMF
text: Oleg Larov , exclusively for Gazeta.kz
Relations of Kazakhstan and the International Monetary Fund were established long ago, since July 1992.
Then a young sovereign republic received a recognition of this world financial institute and became its member. Over the years of development the relations have a relatively plain partnership character.
Chronicle and debit-credit partnership
A month later after this earthshattering event the International Monetary Fund opened its representative office in Kazakhstan. Macroeconomic development of our country in 1992-1998 was realized in significant degree in accordance with recommendations of the IMF.
The International Monetary Fund - intergovernmental monetary organization, with the status of the specialized UN body. Its goal - is an assistance to the international monetary cooperation and trade, coordination of monetary-financial policy of the countries-members, offering loans for regulation of payment balances and supporting of the foreign exchange rates.
In February 1993 the Council of directors of the Fund signed a Program on financing a systematic transformation, according to which SDR123, 75 million (USD165 000 000) was allocated to Kazakhstan. The same amount we should get after signing an Agreement of the reserve credits for the annual program of economic and financial reforms in January 1994. To be frankly, in December 1994 this program was suspended. However, half of the year later, SDR 185,6 million (USD 247 466 000) was allocated to Kazakhstan, which successfully spent it by December 1996.
By the way, in 1996 there was a number of important events. Namely, we joined to the VIII article of the IMF Charter, where obligations of the country-participant are contained not to introduce without an agreement of the fund a limit for fulfillment of payments and transactions on international operations. Besides, we have to avoid participation in discrimination monetary relations.
This very year the IMF approved three years credit for the Republic of Kazakhstan for 1996-1998 years within the framework of the program of expanded IMF crediting, which is aimed at creation of conditions for the real GDP growth.
And finally, in December 1999 the credit for amount of SDR 329,1 million (USD438 800 000) was granted to us in order to assist gold reserves of the country. And this international kind affair did not remain without reply. Already in May of the next 2000 Kazakhstan paid on its obligations to the IMF for the amount of SDR 295,8 million or USD390,5 million, which have to be paid before 2007. Thus, we became the first country of the CIS and Eastern Europe, which paid to the foundation before the term. More so, preterm payment we could save money which were considered for payment of the percents on the credit USD70 million or SDR52 500 000.
SDR is an international reserve asset, which is used by the IMF countries-members (International Monetary Fund). SDR has non-cash form and is used as records in banking bills. Introduction of SDR in 1969 as an additional reserve currency to the already existed ones was triggered by the fact that it was necessary to balance contradictions between international agenda and national nature of the currencies. Since 1979 SDR started to be used as a basic reserve asset of international currencies system.
But our relations are not limited with money operations.
Other than dollars interest
Apart from pure financial injections, the IMF takes also another care of us. Annual (spring and autumn) consultations with the government of Kazakhstan have been conducted and are conducted on major directions of economic policy of the state, information and consultation support of the National bank of the Republic of Kazakhstan is also offered.
After the occasion, when in 2003 the IMF recalled its permanent representative Geoffrey Oestreicher, what was taken as recognition of the successes of Kazakhstan in fulfilling of economic reforms by the fund, the parties started to exchange official delegations.
They were especially frequent in before-crisis and crisis period. In the beginning of October 2007 the IMF mission came to us, which have analyzed the development of the economy of the Republic of Kazakhstan and monetary policy, budget for 2008 and key structural reforms. Then, at the end of the same month, our delegation headed by the former Chairman of the National bank and chair of the Financial Supervision agency A. Dunayev went to Washington, where it took part in annual conference of the Council of the World Bank and IMF managers.
When the crisis came to us officially, our attentive partner was again with us - leader of the IMF mission in the Republic of Kazakhstan T. Callen in September 2008 met prime-minister of Kazakhstan K. Massimov and discussed issues of current situation and state politics.
Recession or rise?
Since this year exchange of working visits are continued. The IMF positively praised measures of Kazakhstani government, which it made with the aim of softening actions of economic vulnerability factors in order to restore high paces of growth in the future. However, according to the opinion of the mission in order to eliminate the factors of vulnerability in the banking sector, a complex strategy is necessary. An important role is given to the Financial Supervision Agency.
In general, the International Monetary Fund stresses three basic directions for overcoming of the world financial crisis. Firstly, it is necessary to provide an access of financial organizations to the liquidity. Secondly, it is necessary to reveal and regulate troublesome assets. Thirdly, the weak, but "viable" organizations should be re-capitalized. This is the world experience.
The decision of the problem could be found in the certain support of the domestic banking system, which is being realized here. The second moment is to find those "dark holes," where the money go, which are directed by the state for anticrisis measures, but which do not bring the positive effect. But it is more difficult task for us. And the most important - is to 'revive' those enterprises, manufacture, which will produce real goods, to support its currency and to foster a further growth of economy. We seem to try to do it, but due to the mentioned "black holes" not all the finances are received by the addressees.
Still our partners from the IMF in study relatively economic future of Kazakhstan. On one hand it is expected, that this year there was a recession of economy of the Republic of Kazakhstan by 2 % and only in 2010 there will be a moderate growth. On the other hand there is an opportunity, that growth will be this year already, due to a growing price for oil, the next year - it will have a more high pace.
However, if to rely only on oil and not to take measures in a complex, the absence of energy measures on solution of the problems in banking sector of the country or prolonged global recession may cause a deeper and long recession of our economy.
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09.01.2013 2012 marked by multiple events in Kazakhstan