Kazakhstan Secures Preferential Financing from IBRD and AIIB for Economic Priorities

Kazakhstan is set to attract approximately US$965.4 million in concessional loans from the International Bank for Reconstruction and Development (IBRD) and the Asian Infrastructure Investment Bank (AIIB). The funds are earmarked to support the nation's priority government measures and key areas of economic development, following the approval of relevant ratification bills by the Mazhilis, the lower chamber of the Kazakh Parliament.

Finance Minister Madi Takiyev announced that the loan agreements were finalized on May 20 and June 15. The financing is being raised in Japanese yen, a strategic choice attributed to Japan's low interest rates and a favorable exchange rate correlation between the yen and the Kazakh tenge. These loans are structured with an 11-year term, including a five-year grace period, and will be repaid from the national budget.

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The financing is being raised in Japanese yen due to relatively low interest rates in Japan and the favorable correlation between the yen and the tenge exchange rate.

Both the IBRD and AIIB are recognized as strategic partners for Kazakhstan, which joined the World Bank's IBRD in 1992 and the AIIB in 2017. Minister Takiyev assured that the country's public debt remains at a safe and manageable level, adhering to international financial institutions' established debt indicators.

International financial institutions like the International Monetary Fund (IMF) project resilience for Kazakhstan's economy this year. This positive outlook is underpinned by strong domestic demand, robust investment, and sustained high oil prices, positioning the country favorably for continued economic growth and development.

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Kazakhstan’s public debt remains at a safe and manageable level, in line with established debt indicators, as assessed by international financial institutions.