Kazakhstan to recapitalize Baiterek holding by $7.4 bln over four years
ASTANA. Oct 24 (Interfax) - The Kazakh government will recapitalize National Management Holding Baiterek by 1 trillion tenge or $1.86 billion at the current rate annually over the next four years, the government's press service said on Friday.
This adds up to 4 trillion tenge or $7.4 billion over four years.
The announcement followed a meeting chaired by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin, which reviewed the draft structure of the revamped Baiterek holding.
"Over the next four years, the government will boost the holding's capitalization by 1 trillion tenge each year, while Baiterek will attract up to 8 trillion tenge in external loans annually to finance priority projects," the press service said.
Baiterek's structure as a managing holding will be transformed to align with the scope and objectives of its new investment mission.
"An analysis of the economic structure over the past 30 years shows that metallurgy, engineering, chemical, agro-industrial, and food industries generate the greatest added value. These will remain priority sectors, alongside trade, finance and construction," the statement said.
Seven investment boards will be created within Baiterek to develop and participate directly in new projects with high added value and productivity potential. The boards will also assess project proposals for alignment with national growth objectives.
The holding's board of directors will be strengthened by increasing the number of independent members, with international investment consultants from leading industries and regions invited to join. "This will ensure transparency and objectivity in decision-making, comprehensive risk assessment, and consideration of all factors affecting project success," the statement said.
All necessary procedures for Baiterek's transformation are expected to be completed by the end of this year, enabling the active rollout of Kazakhstan's proactive economic growth program early next year.
National Management Holding Baiterek JSC, organized in May 2013, is an institute of development in Kazakhstan that supports entrepreneurial activities and development of the agricultural complex and carries out housing programs in the republic. The ultimate beneficiary of Baiterek is the government of Kazakhstan.
