Central and West Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 23,796
% of GDP (2019): 14.99%
% of Regional Total Package: 58.59%
Package Per Capita in USD: 1,302.01
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline KZT1,750,000,000,000 USD4,244,996,968
01A - Short-term lending info_outline KZT1,750,000,000,000 USD4,244,996,968

(i) KZT1 trillion in subsidized lending under the “Economy of Simple Things” program. (ii) KZT600 billion to help small and medium-sized enterprises (SMEs) finance their working capital; (iii) May 14, KZT50 billion in loans to farmers through National Holding Kazagro and KZT100 billion through the “Economy of Common Goods” program.

01B - Support policies for short-term lending info_outline

No amount/estimate: As of June 10, Reduced liquidity coverage ratio requirement (from 80% to 60%).

01C - Forex operations info_outline

No amount/estimate: The National Bank (NBK) allowed the tenge to depreciate by over 15% to almost 450 KZT/USD from March 9, intervening to mitigate excessive volatility. It also introduced a limit on bid-ask spread and lowered the ceiling of FX purchase without supporting import documents for the duration of the state of emergency. The exchange rate has recovered to around 430 KZT/USD, but remains vulnerable to oil price volatility.

02 - Credit creation info_outline
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

(i) No amount/estimate: (a) March 10, The National Bank raised its policy rate from 9.25% to 12% and widened the interest rate corridor from 100 to 150 bps, after pressures on the tenge (KZT) intensified with the drop of oil prices. The NBK cut the base rate to 9.5% and further widened the corridor to +/-200 bps in early April to stimulate economic growth; and (b) To encourage lending, the authorities have also lowered risk weights for SME exposure in tenge (from 75% to 50%) and for FX loans (from 200% to 100%) until October; (ii) As of May 20, interest on subsidized credit from the "Economy of Simple Things" program is being cut from 13-15% to 6%.

02C - Loan guarantees
03 - Direct long-term lending info_outline KZT360,000,000,000 USD873,256,519
03A - Long-term lending info_outline
03B - Forbearance KZT360,000,000,000 USD873,256,519

(i) No amount/estimate: Banks have been requested to allow loan repayments deferrals until mid-June and refrain from charging penalties for borrowers affected by the emergency; and (ii) April 27, More than 1.6 million citizens and 11,000 SMEs received deferral on loan payments in the amount of KZT360 billion.

04 - Equity support info_outline
05 - Government support to income/revenue KZT7,700,000,000,000 USD18,677,986,659

(i) The President announced a significant anti-crisis package now totaling KZT 5.9 trillion. The anti-crisis package includes cash payments to the unemployed (USD95 per month per person), a 10% increase in pension and social benefits, and additional spending to strengthen the health sector (As of May 20: (a) KZT14.8 billion for the construction of three quarantine modular complexes in Nur-Sultan, Shymkent and Almaty; (b) KZT40.6 billion for incentive measures for healthcare workers participating in quarantine activities; (iii) KZT19.5 billion for health organizations treating coronavirus patients; (c) KZT8 billion in salaries will be paid to doctors, police officers and other specialists) and support employment and business; (ii) An additional KZT1.8 trillion will be allocated to support employment under an “Employment Roadmap” program; and (iii) No amount/estimate: SMEs and individual entrepreneurs are also eligible for new tax incentives; (iv) No amount/estimate: May 14, VAT rate has been reduced from 12% to 8% until 1 October 2020 with the exception of food and drugstores, transportation services, consulting services and information technology.

05A - Health
05B - Non-health

No amount/estimate: May 20, residents in Almaty can defer utility payments for March and April until the end of 2020 with no fines or penalty. Reimbursement of utilities expenses for April and May in amount of KZT15,000 will also be provided for socially vulnerable groups.

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received KZT5,841,582,500 USD14,170,000
08A - Swaps info_outline
08B - International loans/grants KZT5,841,582,500 USD14,170,000
08B1 - Asian Development Bank KZT441,107,500 USD1,070,000

(i) USD1 million under the TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (ii) June 3, Developing a Disaster Risk Transfer Facility in the Central Asia Regional Economic Cooperation Region (Additional Financing) - USD0.07million.

08B2 - Other KZT5,400,475,000 USD13,100,000

(i) Kazakhstan received World Bank support and has restructured part of its Social Health Insurance Project to provide USD10 million for critical medical equipment; (ii) As of May 26, USD3.1 million from USAID to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, bolster risk communication, and more.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) Quotas on exports of key food products (wheat and flour) as well as all other restrictions on food product exports will be lifted on 1 June; (ii) As part of the recovery package, Kazakhstan will abandon its 10% flat tax rate and switch to a progressive personal income tax.

12 - Non-Economic Measures

(i) April 21, Kazakhstan bans livestock export for 6 months; April 27: (ii) The quarantine regime is extended until 11 May. The government is preparing a plan to ease the measures in cities and regions where the situation with the virus is under control; (iii) Flights between Nur-Sultan and Almaty will start operating starting from May 1; (iv) The schooling has been moved online, and will last after May 11, however technical difficulties have been reported; (v) The State Commission On Ensuring the State of Emergency is preparing a list of businesses that will resume their activities, which includes industrial enterprises, construction and road construction companies, transport companies, banks and public service centres; (vi) April 30, The city of Almaty announced that Almaty residents are authorised to move to their countryside houses (datcha) and to go to city's playgrounds and parks under certain time and people restrictions; (vii) The state of emergency has been lifted as of May 11. Quarantine is maintained but measures will be gradually relaxed; (viii) Internal flights have resumed, but borders remain closed to non-citizens, as well as international flights from Covid-19 affected countries; (ix) The visa exemption for 56 countries (including EU and France) has been suspended until 1 November; (x) As of May 20, WHO has approved a Kazakh COVID-19 vaccine for preclinical trials; (xi) Cash withdrawals limits will be temporarily imposed on legal entities starting early June. A pilot biometric information center has been launched to help banks identify customers in order to provide remote banking services; (xii) Full reopening of kindergartents, movie theaters and children's playgrounds in shopping centers was postponed in Nur-Sultan is postponed. Only kindergartens in small groups of no more than 15 children might continue the operation. [update]