11 Sep 2009 15:10

Asian Development Bank to lend $500 mln to Kazakhstan

ASTANA. Sept 11 (Interfax) - The Asian Development Bank (ADB) is providing a $500-million Countercyclical Support Facility (CSF) to Kazakhstan.

The loan is for five years with no principal payments due for three years.

The interest rate is LIBOR+2% and the reserving commission on the unallocated portion of the loan is 0.75% annually.

The money "will be used to finance the republican budget deficit and implement the government's anti-crisis measures, which will lead to job creation, restructuring of commercial banks, the opportunity to support SME, carry out infrastructure projects and develop agriculture.

The funds will be allocated in a single tranche once the loan agreement between the Kazakh government and the ADB enters force. The Finance Ministry will service and repay the loan with budget funds to be allocated in subsequent years.

The CSF program was drawn up with the goal of mitigating the global financial crisis and supporting state budgets of ADB member states.

The ADB was founded in 1966 to stimulate the economies of the Asian Pacific Rim through lending and technical assistance.