EBRD supports Kazakhstan's proposal to create “Central Asian Schengen zone”
By Kamila Aliyeva
President of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti supported the proposal of Astana to create a “Central Asian Schengen zone”, which foreigners will be able to visit on a single visa in an interview with Reuters .
“That would be a game changer for the region”, he said.
After more than a decade-long break, the EBRD resumed its operations in Uzbekistan last year. The return of the bank to the most populated country of Central Asia took place in 2016.
The bank has invested more than 100 million euros in Uzbekistan last year and has a large number of possible projects for the future, according to Chakrabarti.
“I’m very pleased with our new beginning in Uzbekistan,” he said, adding that he planned to visit Tashkent in September to finalize a country strategy which the EBRD board is due to approve the following month, Reuters reported.
“There are more reforms to come... but I’m very confident that we have a team, from the president (Mirziyoyev) down, who are very committed to that,” Chakrabarti said.
Speaking of sectors that could be privatized by Tashkent, he said it was important that banking was among the first to open up, as that would help efficiently allocate resources.
Still, Uzbekistan has a long way to go before it overtakes Kazakhstan in terms of EBRD investment, Chakrabarti said. He pointed out that the bank is note viewing the two countries as competitors.
The EBRD, recognizing the importance of Central Asia for itself and adherence to Kazakhstan, one of the five largest markets of the bank, plans to appoint a managing director in the region, which will be based in the former Soviet republic, in 2019.
In addition, the bank may acquire a minority stake in Kazakhtelecom, Kazakhstan's largest fixed-line operator, which could make it more attractive to potential foreign investors, EBRD executives said.
“This is a catalytic role for the EBRD,” Chakrabarty said in Astana.
EBRD head in Kazakhstan Agris Preimanis said that the size of the bank's investment will ultimately depend on what stake in the company the government of Kazakhstan, which owns 51 percent of the operator's shares, will decide to sell.
Kazakhstan also plans to privatize the national nuclear company Kazatomprom and air carrier Air Astana, in which the EBRD, according to Chakrabarti and Preimanis, is also potentially interested.
However, for now the bank is focused on Kazakhtelecom, since the operator is closer to selling its stakes.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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