Kazakh Finance Ministry may mull Eurobonds, Islamic bonds
ASTANA. Jan 30 (Interfax) - Kazakhstan's Finance Ministry may consider issuing Eurobonds and Islamic bonds, said Finance Minister Bolat Zhamishev.
"Issuing Eurobond and sukuk depends on the current market conditions and plans of the corporate sector to enter capital markets. The world financial market situation is being monitored constantly," he said at the Ministry's board on Monday in Astana.
"In fact, we don't need funds to cover the budget deficit, but if corporations start raising money on capital market and benchmark is relevant, we may issue Eurobonds and Islamic bonds," said Zhamishev.
It was reported that the national budget deficit in 2012 is 758.5 billion tenge, or 2.6% of GDP.
Deputy Finance Minister Ruslan Dalenov said last autumn that Kazakhstan might place between $500 million and $1 billion in Eurobonds this year to cover the deficit.
The Kazakh government plans to borrow $2.2 billion on the world capital markets this year, Finance Minister Zhamishev said at a meeting of Finance Ministry officials.
"In general, the external borrowing in 2012 will amount to nearly $2.2 billion," he said.
Zhamishev said the funds raised would go to finance New Astana Transport System, a second phase of the irrigation and drainage system modernization and Western Europe - Western China Transport Corridor.