November 30, the President Nursultan Nazarbayev delivered the Message to the people of Kazakhstan. This year, the main theme of the President’s speech has been the anti-crisis measures that should be taken by the Government to overcome the consequences of economic instability.
“In the Message to the people, the President identified the main cause of the current economic situation - encompassing crisis in most segments of the global commodity market. So, during the past year and a half the price of oil fall by 66%, wheat - by 54%, copper - by 47%, gold - by 40%, aluminum - by 30%. For some products the current fall in prices is even stronger than in the last crisis,” said the Chief Researcher of Kazakhstan Institute for Strategic Studies under the President of Kazakhstan Vyacheslav Dodonov in an interview for the portal ORTCOM.KZ.
Many economies of the world go through hard times. As a result, the demand and prices for products exported by Kazakhstan are reduced, said the expert.
In this regard, the President of the country paid great attention to the need to stabilize the financial markets and changes in the structure of the National Bank of Kazakhstan.
Firstly, the National Bank was instructed to carry out stress testing of entities of the banking sector for non-performing loans. Following its results will be taken measures to write them off. Banks that will be unable to solve the problem of capitalization must “leave” the financial system. In addition, the important point was of the Message - to increase confidence in the national currency by expanding the tools of “de-dollarization”.
Another measure that is necessary to stabilize the financial market - the removal of institutional defects of the National Bank. The Single Accumulative Pension Fund, the Fund of problem loans and other financial institutions will be excluded out of its control.
“This measure must create a competitive environment in the management of pension funds and thereby increase their profitability. Unlike the previous system, a Single State Fund will monitor the activities of management companies,” said the economist.
Thus, assets and the high yield will be ensured and maintained.
In general, the restructuring of the financial regulator will make it more efficient, that is especially important in the new global reality.