KAZAKHSTAN SEES DECLINE IN FOREIGN BANK INVESTMENTS FOR SECOND CONSECUTIVE YEAR
Investments in fixed assets from foreign bank loans have more than halved, with the percentage of foreign bank loans amounting to less than 0.1% of the total investments, Finprom.kz informs.
In the period from January to October 2019, fixed asset investment, largely bank loans, stood at 227.3 billion tenge, with a drastic decline by 64.4% for the first times in years.
This year bank loans’ share in capital investments has equalled 2.3%, falling from 7.4%, while fixed asset investments through foreign bank loans have totalled at 9.3 billion tenge, decreasing by 58.7% compared to January October 2018. Foreign bank investments are on the decline for the second consecutive year.
The share of investment acquired through foreign bank loans has been less than 5% of the total investment for the second year in a row, growing from 3.5% to 4.1% in the last year, while that of the total fixed asset investment has been less than 0.1% this year, against 0.3% and 1.1% in previous years.
This year, foreign bank investment has largely fallen on the manufacturing sector: 7.7 billion tenge (-65.9% within the year), including 7.5 billion tenge on the non metal mineral products manufacturing sector, and another 157.5 million tenge (-99.3% per year) on the production of coke and oil products.
Foreign banks’ share in investments through all bank loans has seen a yearly increase from 4.8% to 10.3% in the industry, particularly in the manufacturing industry from 5.3% to 16.5%.
In non metallic mineral product output foreign banks have represented more than half of investments obtained through loans 55.6%, while in coke and oil products their share have been 3.3% (a year earlier 5.8%).
The remaining 1.6 billion tenge account for transport and storage, 2.4% of the total investment made through bank loans in the industry.
Kyzylorda region represents nearly 81% of the total investments through foreign banks, 7.5 billion tenge (production of non metallic mineral products). Karaganda and Atyrau regions represent 17.5% (1.6 billion tenge) and 1.7%, respectively.
Source: Kazakhtan 2050