Tokayev: Coronavirus, low oil costs negatively affect Kazakhstan’s financial system

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NUR-SULTAN, Kazakhstan – Kazakh President Kassym-Jomart Tokayev, talking at an prolonged authorities assembly on July 10, reported on the damaging impact of the coronavirus pandemic on the nation’s financial system.

“Since the beginning of the year, the national economy has been developing in difficult conditions. In general, the country’s economy fell by 1.8%. The services sector suffered significantly due to the pandemic (5.6%),” Tokayev mentioned.

He instructed the federal government to maintain inflation in Kazakhstan within the hall of 8-8.5%.

“In June of this year, annual inflation reached 7%. Given the problems in the economy, the target corridor for annual inflation was adjusted to 9-11%. At the same time, I consider it necessary to ensure that inflation is kept within 8-8.5% by implementing a more effective monetary policy,” he mentioned.

According to him, the lack of the finances of Kazakhstan for 2020 will quantity to 1.7 trillion tenge. “Quarantine and lower oil prices led to a sharp reduction in budget revenues. Losses of the republican budget revenues for 2020 are estimated at 1.7 trillion tenge ($ 1-410, 7 tenge). Now, budget stability is achieved through transfers from the National Fund,” Tokayev mentioned.

For this yr, the scale of the assured switch from the National Fund was elevated to 4.7 trillion tenge.

“Since 2021, transfers from the National Fund should be only targeted. They can be aimed exclusively at solving social problems and infrastructure development,”  the top of state added.

He famous that the introduction of recent quarantine measures might additional complicate the state of affairs within the financial system. “The government should have an appropriate action plan,” Tokayev mentioned.

Over the previous day, 1,726 individuals have been contaminated with a brand new sort of coronavirus in Kazakhstan. The complete variety of contaminated elevated to 54,747.

Since the start of the epidemic, 31,815 individuals have recovered, 264 have died.