ADB approves $1bn “fiscal leeway” loan for Kazakhstan

24 Aug 15

The Asian Development Bank has approved a $1bn loan to give Kazakhstan ‘fiscal leeway’ amid economic challenges in the country.

The loan, from the ADB’s Countercyclical Support Facility, will boost existing government programmes to improve the country’s infrastructure and maintain social spending.

These schemes have been under pressure due to the low global oil price said Lotte Schou-Zibell, the ADB’s principal economist in its central and west Asia department.

“[The loan] will help the government modernise infrastructure and maintain spending programmes for job creation, social services, support to low-income households, and private sector development, particularly for small businesses,” she added. 

The five-year ADB loan, which will be paid in two tranches of $500m each, will support the implementation of key policy reforms in these areas. The scheme will also be supported by transfers from Kazakhstan’s own National Fund, which has been built up from oil revenues, and funding from other development partners.

Did you enjoy this article?

Related articles

Have your say

CIPFA latest

Related jobs