Finance In Brief

The Ministry of finance of Kazakhstan plans to offer the next issue of MEKKAM-6 till the end of the week

/IRBIS, March 21/

In addition to previously announced SS offerings, the Ministry of finance of Kazakhstan has planned another issue of MEKKAM-6.

MEKKAM-6 offering auction (issue #131, NIN will be published later) will be held on March 24 with transfer of funds for purchased MEKKAM on the same day. Maturity date � Sep.22, 00. Circulation term � 182 days. Planned issue volume � KZT500 mln.

Considering the facts mentioned above, issuance and repayment schedule for the securities of the Ministry of finance in this week (from March 20 through 26), previously published by IRBIS, looks as follows:

Securities of the Ministry of Finance

� Issuance, March 20 � KZT500 mln, MEKKAM-6 #130 (KZ46L2109A00).

� Issuance, March 21 � KZT500 mln, MEKKAM-12 #37 (KZ4CL2203A18).

� Issuance, March 24 � KZT500 mln, MEKKAM-6 #131.

� Maturity, March 23 � KZT1,713.8 mln (MEKKAM-3 #256, KZ43L2303A07).

Securities of the National Bank

� Issuance, March 21 � KZT300 mln, notes-35 #381.

� Issuance, March 24 � KZT300 mln, notes-42 #382.

� Maturity, March 24 � KZT837.0 mln (notes-49, KZ97K2403A02).

In this week total repayment volume of SS of Kazakhstan is estimated at KZT2,550.8 mln.

U.S. dollar market of Kazakhstan: day results

/IRBIS, March 21/

Following is the table of major indicators of Kazakhstani market for U.S. dollar (more than 98% of country's all currency market).

Trades in U.S. dollars at Kazakhstan stock exchange (KASE)


Session Main Additional. Evening Evening

Time of the trades (ALM) 10:15 - 11:00 11:30 - 15:30 14:00 - 18:00 14:00 - 18:00

Weighted average rate 141.42 (-0.17) Not indicated � 141.50

Volume of the session (mln) 4.425 (-7.445) 0.310 0 0.200

Ask 141.41 141.34 141.45 141.50

Bid 141.42 141.39 � 141.60

Number of participants 18 4 3 3

Indicative U.S. dollar quotations on interbank market in information system REUTERS at closing of KASE sessions (disregarding settlement dates)

Ask 141.32 141.34 141.35

Bid 141.42 141.40 141.45

Notes: Best bid and ask prices at closing of the trades are shown as the Exchange quotations.

By indicative interbank quotations of the dollar in REUTERS information system, tenge gained 14 points in comparison with previous day closing on demand and 12 points on supply of the American currency.

Today tenge strengthened its positions on the Exchange market. Both the main and additional sessions confirmed it. However, after 4:00PM quotations of the American currency and the price of a single deal on forward terms indicated the dealers' expected growth in the exchange rate of U.S. dollar on Thursday and Friday (we remind that due to Nauryz holidays Kazakhstani financial markets will be closed on Wednesday).

Indicative quotations of interbank market were less concrete than those of the Exchange. With quite wide spreads they showed unwilling and faint firming of the dollar against the tenge in the afternoon.

In IRBIS analysts' opinion, these dynamics of currency market indicators were caused by an influence of free funds deficit in correspondent accounts of BST. Quotations of the shortest money reached their peak in the afternoon � 16/24% APR. By the evening "overnight" rates fell down to yesterday's level � 10/20% APR. In repo sector of KASE money was attracted by the banks for 2 days at 15.00% APR, for 6 days � at 21.82% APR. Notes-35, offered by the National Bank today, were not asked for: with insignificant volume of applications, the yield asked by the dealers could not satisfy the emitter. The issue of MEKKAM-12 had the same fate.

Based on quotations of the dollar on TOM and SPOT terms, deficit of free funds will decline only on Friday when firming of USD can be expected. It is hard to make a solid prediction for Thursday. Tenge has equal chances of getting back some points and loosing some against the U.S. dollar as well.

Kazakhstan Government Anxious About the Situation in the Aktobemunaigas Oil Company

Daniel FERRO, ASTANA, March 23 (THE GLOBE)

On Tuesday at a meeting with the deputy General Director of the Chinese national Petrol Company (CNPC) U Yaoven the Kazakhstan Prime Minister expressed his anxiety about the situation surrounding Aktobeminaigas.

He said that reduction of jobs in the company is particularly disturbing. The population's employment was �very important� for the government, the PM said.

The head of the government requested the CNPC administration not to increase the number of Chinese staff in the venture �when it was not necessary.�

Tokaev also expressed the hope that Aktobemunaigas would not reduce oil production.

At present, he said, the Kazakhstan government was following foreign investors working in the country's companies in terms of how they adhered to national legislation. Aktobeminaigas would be also supervised, the head of the cabinet stressed.

At the same time all investor rights, as set out in Kazakhstan's legislation would be strictly observed by the government, Mr. Tokaev stated.

The Prime Minister furthermore asked the company's administration to work more actively with the oblast and with the Aktyubinsk oblast community.

Kasymzhomart Tokaev emphasised that the government would meet all of its responsibilities towards the CNPC.

On the same day the CNPC and the Aktyubinsk oblast Akimat signed a joint memorandum.

Kazakhstan has identified lead-managers for offering the

next issue of euronotes

ALMATY, March 21 (IRBIS)

As REUTERS informs, Kazakhstan, who plans to launch the next issue of euronotes this year, identified lead-managers for the issue. This time they are Deutsche Bank and J.P. Morgan. The results of the tender were to REUTERS over the telephone given by the director of state borrowing department of the Ministry of finance of Kazakhstan Arman Dunaev.

He says volume and currency of the issue, as well as placement terms will be determined along the way by cooperation with the lead-managers. Supposedly, bonds will be nominated in U.S. dollars. As vice-prime Erjan Utembaev said previously, issue volume of Kazakhstani euronotes could be from $200 to $500 mln.

REUTERS, with the reference to western experts, informs that Kazakhstan plans to use the funds received from the placement of euronotes mainly to pay off its external debt which is estimated at $473.3 mln this year against $643.1 mln in 1999.

Planned issue is the forth for Kazakhstan. The first issue (XS0072056863, $200 mln) was placed with the help of ABN AMRO Bank on December 20, 96 and was successfully repaid on December 20, 99. The lead-manager of the second issue (XS0080679961, Oct.2, 97, $350 mln for 5 years) was J.P. Morgan. The third issue was launched on Oct.18, 99 (XS0102764031, $200 mln for 5 years) with the help of ABN AMRO Bank NV and Deutsche Bank AG and later additional two placements were held: on Nov.4, 99 for $25 mln (repayment date � Nov.22, 99) and on Nov.26, 99 for $50 mln (repayment date � Dec.15, 99).

At KASE dollar grew some due to accumulated demand

over the holidays

ALMATY, March 23 (IRBIS)

Today the next morning trades in U.S. dollars, Deutsche marks and euros were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 18 banks participated in the trades.

Today the trades in U.S. dollars opened at KZT141.52 per unit. Total of 80 deals were made. Weighted average dollar exchange rate equaled to KZT141.57 (+0.15) per unit. Volume of the session � $2.160 mln (-$2.265 mln). Exchange rate fluctuation during the trade �0.07%. The trades were closed at KZT141.57/58 per dollar.

Today the conjuncture of the market did change a little bit. On the one hand, low volume of the trades indicated that the banks of the second tier were limited in free funds. On the other hand, demand, that has accumulated over the holidays, existed on the floor and thanks to it the exchange rate of the dollar was raised quickly from KZT141.50 up to KZT141.60 per unit in the first half of the trades.

After a temporary downward correction of the exchange rate of the dollar in the middle of the trades, a balance between demand and supply has settled on the floor within a narrow price interval of KZT141.57 - 141.58 per unit which remained intact until the very closing of the trades. Demand did not decrease though. The bids on buying dollars were satisfied by a major seller who joined the trades only at final stage. It is interesting to note that except for some instances most of the deals, made by the dealers, did not exceed 100 th. USD today.

The trades showed that short term devaluation expectations remained high yet, notwithstanding the deficit of tenge and 5 point reduction of the official rate of the dollar by the National Bank yesterday. The banks use each opportunity to stretch their currency positions.

One hour after closing of the morning session on interbank market of Kazakhstan dollar was quoted at KZT141.52/62 per unit. Two hours later � KZT141.56/62. In the day session of KASE with TOD payment terms at 12:30PM the dollar was at KZT141.58/60.

Deutsche mark, morning session, TOD: 1 deal, price � 70.30 (-0.27) tenge per unit, volume � DEM5 (-40) th. Closing quotations � KZT69.70/70.30 for mark.

Euro, morning session, TOD: no deals. Closing quotations were absent.

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