News Brief: IMF Executive Board Completes Fifth Review of Kazakhstan's Economic Program: Next Loan Tranche Approved
December 15, 1998
IMF Executive Board Completes Fifth Review of Kazakhstan’s Economic Program: Next Loan Tranche Approved
Shigemitsu Sugisaki, Deputy Managing Director of the International Monetary Fund (IMF) said, "I am pleased to announce that the IMF’s Executive Board today approved the completion of the fifth review of Kazakhstan’s three-year credit1 with the IMF."
"In approving release of the disbursement of SDR 154.7 million (about US$217 million), Executive Directors noted that the Kazakh authorities have responded appropriately and forcefully to difficult external circumstances by deepening their adjustment efforts. Though there may be a delay in the revival of economic growth, the policies in place now and the ones envisaged for 1999 provide the best avenue for sustained growth over the medium term," Sugisaki said.
Prior to the Russian crisis and its adverse effect on many neighboring economies, Kazakhstan had achieved a record of good policy implementation that resulted in a resumption of growth and a decline in annual inflation to single digits. During the second half of 1998, however, the country has suffered a decline in export prices, a reversal of international financing flows, and a reduction in the willingness of economic agents to hold tenge-denominated assets.
1 Kazakhstan’s Extended Fund Facility was approved on July 17, 1996 for a total of SDR 309.4 (about US$433 million). See Press Release No. 96/39. The disbursement will be the first under the arrangement, which has been considered precautionary until now.