By Kamila Aliyeva
The gross external debt of Kazakhstan amounted to $165.4 billion as of the end of September 2016, the National Bank of Kazakhstan reported.
In the structure of external debt, $12.7 billion accounted for external public sector debt and $7.5 billion - banking sector.
Intercompany debt, which includes debt owed to creditors of the affiliated organizations of quasi-public sector, was $90.4 billion on September 30, 2016, or 54.7 percent of GDP, that has increased from the beginning of the year to $8.4 billion.
In the third quarter of 2016, the increase of the intercompany debt by $4.9 billion made a major contribution to the growth of the external debt of the country.
The National Bank reported that the increase is linked with the beginning of the financing the project of future expansion and control wellhead pressure LLP "Tengizchevroil", as well as the continuation of the North-Caspian and Karachaganak projects.
The increase of external debt index to GDP is due both to the growth of the debt and to a GDP decrease in dollar terms. Estimated GDP, which includes the period from the III quarter of 2015 till the III quarter of 2016 increased by 3.1 percent in KZT (tenge) and decreased by 9.4 percent in dollar terms.
Pure external debt of Kazakhstan as of September 30, 2016, amounted to $36.8 billion, or 27.1 percent of GDP that has increased for the III quarter of 2016 by $1.2 billion or 3.3 percent.
The Kazakh National Bank forecasts inflation rate in the country to decrease to 6.5-7 percent in 2017, and to begin to smoothly enter the target range of 5-7 percent in 2018.
In 2016 inflation rate hit 8.5 percent in Kazakhstan.
Meanwhile, the National Bank forecasts that economic growth in Kazakhstan to accelerate to 2.2 percent in 2017 and to 4.7 percent for the nine months of 2018.
According to the IMF, Kazakhstan’s economy growth in 2016 was positive, 1 percent, reflecting an increase in oil production and supportive policies, notably Nurly Zhol state program, which provided funding for infrastructure, SMEs, and housing.
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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