Finance In Brief

According to NSC, sum of the net pension assets in Kazakhstan at the beginning of January is $466.6 millions

/IRBIS, Jan.17/

According to the data of the National securities commission of Kazakhstan (NSC), sum of the net pension assets (PA) in republic (the sum of pension assets minus the charged commissions and accounts payable) as of January 01, 2000 has made 64,501.6 million tenges or $466.6 million at current average weighted market rate. A corresponding parameter on December 01, 1999 was 59,903.5 million tenges or $433.9 million.

For the month the Accumulative Pension Fund assets have grown by 7.7% in tenges or by 7.5% - in dollars. For the last four months of 1999 it is very large speed. For example, in November the growth has made 2.5% in tenge and 3.9% in currency.

One from the PAMC (Pension Assets Management Company) employees has given an plausible explanation of this phenomenon. As it is known, in December the government has paid wages to the state employees and it increased pension funds allocation. Also the premiums were given in some organizations. Many chiefs has made the premature wages payment to close all money turnovers of 1999. It is possible that these three reasons explains the December�s high grow. Their action has canceled now and it can explain a sharp reduction of the grow in January 2000.

By the beginning of December PA has made 64,562,7 million tenges, from them 63,625.7 millions were invested.

The share of SAPF (State PAMS) assets has decreased for a month from 53.8 to 52.5%.

There are 7 PAMS in the country, 15 non-state and one state Accumulative Pension Funds (APF).

The largest Non-state APF at the end of December: Closed JSC �APF Halyk Bank of Kazakhstan� (16.5% of assets) and Closed JSC �ONPF �Ular� (6.3%).

PAMS of the National Bank of Kazakhstan is the biggest in term of assets under its management (16.5% from total), PAMS �ZHETYSU� (10.1%) is the second in the list.

The invested assets were distributed among the financial tools as follows (in brackets - corresponding parameters on December 01, 1999):

- Internal State Securities of the Ministry of Finance (KZT) - 4.22 % (2.04 %);

- Internal State Securities of the Ministry of Finance (USD) - 52.23 % (53.61 %);

- Eurobonds of Kazakhstan(USD) - 36.18% (37.80%);

- Notes of the National Bank (KZT) - 2.04 % (22.22%);

Notes of the National Bank (USD) - 0.39% (0.04%);

- Bonds of the local Kazakhstani executive bodies (USD) - 0.29% (0.08%);

- Non-state securities (KZT) - 0.37% (0.27%);

- Non-state securities (foreign exchanges) - 2.62% (2.97%);

- Deposits and deposit certificates (KZT) - 0.68% (0.11%);

- Deposits and deposit certificates (foreign exchanges) - 0.98% (0.16 %).

Note of IRBIS: the analysis has been executed using only the data given by NSC. IRBIS agency does not answer for reliability ofthe NSC information.

Shares of OJSC �Astana-finance� (Kazakhstan) were entered in KASE official list of securities

/KASE, Jan.18/

By the decision of the Exchange council of Kazakhstan stock exchange (KASE), dated January 17, 2000, common inscribed shares of open joint stock company �Astana-finance� (Astana) were entered into official list of securities in category �B�.

OJSC �Astana-finance� started as CJSC �Fond-Akmola� in April of 1998, which was established by the decision of an Administrative council of Akmola special economic zone (SEZ, presently � special economic zone of Astana) on the base of State institution �Fond ekonomicheskogo i sotsialnogo razvitya Akmolinskoi spetsialnoi ekonomicheskoi zony� (Economic and social development fund of Akmola special economic zone). By the decision of the Administrative council of SEZ, which is the only founder and shareholder of CJSC �Fond Akmola�, it was reregistered as OJSC �Astana-finance� on August 14, 1999. As of December 2, 1999 the company had 73 employees.

The company is an organization that conducts some banking operations in accordance with the license #25 of the National Bank of Kazakhstan to conduct banking operations in tenge and foreign currency, dated October 1, 1998:

- lending operations: granting loans;

- other operations, specified by the banking legislature: leasing a property with keeping the ownership rights of the lessor on that property for a whole time of the contract (the lease); factoring operations � acquiring the rights for the payment from the buyer of the goods (work, services) by accepting the risk of non-payment.

Apart from the license of the National Bank of Kazakhstan, OJSC �Astana-finance� has the State license #0000058 of the Agency for real estate and legal entity registration of the Justice Ministry of Kazakhstan to conduct real estate appraisal activities, dated February 17, 1999.

As a non-banking financial establishment, according to the Charter and possessed licenses, the company engages in following activities:

- a financial operator of the Administrative council of SEZ of Astana in accordance with the agent agreement of February 6, 98;

- an agent on servicing private external borrowing to reconstruct International airport �Astana�;

- finances projects according to ABRD credit line for import substitute production development and industry of Astana development programs, for small and medium sized business support program;

- offers services to the Administrative council of SEZ of Astana to issue municipal bonds and implementation of mortgage credit programs for housing development;

- an agent of the government of Kazakhstan, the Ministry of finance of Kazakhstan and Administrative council of SEZ of Astana on servicing loans and financing economic and social development programs of SEZ of Astana and entrepreneurship support programs.

As a non-banking financial establishment, OJSC �Astana-finance� has no correspondent relationships with the banks. Accounts settlement system of the company is based on the existence of accounts in the banks of the second tier. Settlement and currency accounts are opened in OJSC �Tsesnabank�, OJSC �KAZKOMMERTSBANK�, OJSC �Irtyshbusinessbank�, only settlement accounts in OJSC �Halyk Bank of Kazakhstan� and OJSC �Bank TuranAlem�. Payments are made by a remote access to �Bank-Client� payment system via a modem connection.

The main task of the company, as a financial operator of the Administrative council of SEZ of Astana, is rational and effective use of funds allocated for economic and social programs, projects and activities to stimulate highly effective, profitable businesses, optimization of city�s economic structure, support and development of the entrepreneurship, creation of modern production and social infrastructure to provide new manufacturing facilities and work places in the new capital of Kazakhstan � Astana.

The company participates in the projects within a general development program of Astana, which provides for the construction of the capital using state investments, foreign borrowings, direct investments of domestic and foreign investors.

OJSC �Astana-finance� has received auditing report of �Arthur Andersen� on its financial statements of 1998.

As of January 1, 2000 announced authorized capital of the company was KZT5.0 bln, issued capital � KZT3.1 bln, paid � KZT100.0 mln. Based on financial statements of the emitter as of October 1, 1999 book value of the assets (currency of the balance sheet) was at KZT15,820.8 mln, shareholders� equity � KZT2,378.9 mln, net working capital � KZT759.2 mln, accounts receivable � KZT15,020.2 mln, accounts payable � KZT1,253.0 mln, net income � KZT2,176.0 mln. In 1998 return on assets reached 1.69%, return on equity � 57.34%, by the results of 9 months of 1999 � 13.75% and 91.47%, respectively.

Within two issues the company has issued 3,100,000 common inscribed shares (KZ1C7671418) for KZT3,100,000,000, including: first issue (registration date � February 8, 99) � 100,000 shares, second issue (registration date � December 14, 99) � 3,000,000 shares. Par value of a share � KZT1,000. Book value of one paid share, based on financial statements of the emitter as of October 1, 99, is KZT23,788.55.

Credit of US$ 25 Million Allotted to the National Nuclear Company

There is Enough Uranium in the Country


ALMATY, Jan 19


�The national nuclear company Kazatomprom received the credit in the amount of US$ 25 million as a pre-export financing by the German bank Westdeutsche Landesbank Girozentrale,� Mukhtar Dzhakishev, the Kazatomprom President announced on January 19 in Almaty. The credit has been allotted for one year. It will be repaid regularly during the year from the export revenues of the company.

Credit will be used to replenish the working capital of the mining departments and the Ulbinsky Metallurgical Plant, as well as to finance a number of investment programs. According to Dzhakishev, this will allow to increase the production of uranium in this year, to fulfill preparation works and to start the intensive exploitation of the new deposits. Industrial capacities of the Ulbinsky Metallurgical Plant (the uranium, beryllium, and tantalum productions) will be modernized. Mukhtar Dzhakishev said that the reorganization of the mining and processing enterprises will allow soon to create an optimal structure of the national uranium industry. Due to the prospecting of new deposits the uranium production will be significantly increased. Dzhakishev emphasized that the above-mentioned credit was received due to the direct negotiations without any governmental guarantee. This proves the high ratings of the company and the new phase of the cooperation with foreign financial institutions.

�The national nuclear company Kazatomprom is a reliable partner with a good export history. That is why we chose it,� Eckhard Zahs, the Sales Manager of Westdeutsche Landesbank Girozentrale, said. He added that at present they had agreed on the further financing of this important industry for bigger amounts and longer periods.

Westdeutsche Landesbank Girozentrale is one of the biggest German banks with the total assets of over DM 690 billion. The financing of Kazatomprom is the first Bank�s project in Kazakhstan.

Hong Kong and Shanghai Banking Corporation in the Kazakhstani Banking System


ALMATY, Jan 19


The Forum devoted to the topic �Banking System of the Republic of Kazakhstan and the role of HSBC� was held in the building of the Kazakhstani Institute of Management, Economy and Prognoses (KIMEP).

HSBC Bank Kazakhstan is a subsidiary of the HSBC group (Hong Kong and Shanghai Banking Corporation), one of the biggest financial organizations in the world, which offers a wide range of banking, financial, investment and insurance services in the Asian-Pacific region, Europe, North and South America, Near East and Africa.

The HSBC group established in 1865 as the limited company, presently has the central office in London and works through 5,500 offices in 79 countries of the world.

At the Forum the HSBC Bank Kazakhstan Board chairman Brampton Mundy was present. He said that the HSBC Bank Kazakhstan conducts investment and trade-financial operations, including payment-cash services, and operations with foreign currency and securities.

Since the beginning of its activity in the Kazakhstani banking market, the HSBC group applies to its experience of treating the market problems and difficulties in the foreign trade.

ALTEL Announced the New Tariff Policy


ALMATY, Jan 19


�From January 3, 2000 ALTEL company announced the reduction of tariffs of the broadcasting time by 25% and of the subscriber fee � by over 50%,� the ALTEL commercial service Vice-President said on Wednesday, January 19, in Almaty.

According to Michael Grishkov, the company�s previous reduction of tariffs was in March 1999. That time the cost of outgoing calls was US$ 0.33 in day, and US$ 0.19 in the night. Incoming calls were free. The subscriber fee was US$ 9, 19, 29 and 39 depending on the type of connection: local, intertown and international.

From January 3 the cost of outgoing calls is US$ 0.25 in day, and US$ 0.19 in the night. The subscriber fee is US$ 9, 12 and 14.

For the previous year the cellular market in Kazakhstan grew 3 times and came to almost 200%. This was unprecedented growth within the CIS. Grishkov said that 1999 was unprofitable for all Kazakhstani cellular companies, except ALTEL, and the reduction of the tariffs is the result of the successive price policy.

Today ALTEL works in 12 Kazakhstani towns. The number of subscribers is about 35,000, including connected by the main tariffs � about 17,000 and by TUMAR program � 18,000.

In connection with the appearance of K�cell and K�mobile companies in the Kazakhstani market that also render cellular services, ALTEL expected that some subscribers would shift to these companies. But the number of those subscribers was 2 to 3 times less in 1999.

In the late 1999 the number of ALTEL subscribers was 21,000. The company continues to occupy over 50% of the cellular market. The total number of subscribers in Kazakhstan�s cellular market is 50,000 to 60,000.

In the last year the composition of the ALTEL shareholders changed. Initially the company was established as the joint venture of Kazakhtelecom and Wireless Technology Corporation Ltd. However, on September 30 1999 the successor of the latter was PLD Telecom (Pittsburgh Long Distance).

In March 1994, when ALTEL was founded, the Ministry of Communications granted the company the license for rendering cellular communication AMPS/NAMPS services in Kazakhstan (within the diapason of 800 MHz).

Today almost all communicational standards have problems connected with the problem of protection of telephonic talks from intercepting. Grishkov did not missed the occasion to criticize the competing companies. He gave an example, connected with the arrest of the leader of the Kurdish Working Movement Abdullah Ojalan, who was arrested thanks to the intercepting of his call by the cellular phone GSM.

The total volume of the foreign investment to ALTEL has come to US$ 20 million. In its own turn, Kazakhtelecom allowed to use its ground networks.

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