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Nordic Investment Bank starts operation in Kazakhstan

11 September 2019 12:11

NUR-SULTAN. KAZINFORM – Today the plenary session of the Majilis of Kazakhstan Parliament has approved the draft law «On ratification of the Framework Agreement between the Republic of Kazakhstan and the Nordic Investment Bank regulating the activities of the Nordic Investment Bank in Kazakhstan», Kazinform correspondent reports.

«The framework agreement was signed in Helsinki on October 16, 2018. The agreement makes possible opening the activities of the Nordic Investment Bank to finance investment projects in the Republic of Kazakhstan. The Nordic Investment Bank was founded in 1975 and is a multilateral development bank which members are the countries of Scandinavia and the Baltics. The headquarters is located in the city of Helsinki. The authorized capital of the Nordic Investment Bank is 6 billion 142 million euros which is formed by payments of the member states including Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The total loan portfolio of the Nordic Investment Bank in 2018 amounted to 19.1 billion euros. It is notable that loans are provided for up to 25 years. According to the strategy of the Nordic Investment Bank, about 20% of the loan portfolio is provided to countries that are not its permanent members. The main areas of financing are sectors such as energy, green economy, telecommunications, transport, various industries, agriculture, healthcare, small and medium-sized businesses», said Ruslan Dalenov Minister of National Economy of the Republic of Kazakhstan.

Responding to questions asked by deputies the Minister explained that the Loan Committee of the Bank determines the volume of loans provided by the Nordic Investment Bank. A lending rate for a national loan is 2%, a lending rate for a private sector is about 7 %. Loans are provided for up to 25 years. According to Mr.Dalenov, the Bank’s conditions for granting loans are attractive and similar to those of other international financial institutions. For example, the Asian Development Bank provides government loans at a rate of 2.6%, the European Bank for Reconstruction and Development - 3%.

Keywords: Economy, Banks,