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Kazakhstan improves its position in OECD country risk rating

20 February 2019 18:19 (UTC+04:00)
Kazakhstan improves its position in OECD country risk rating

By Abdul Kerimkhanov

The main objective of the monetary policy of the Kazakh National Bank is to ensure price stability in the country. Creating a macroeconomic environment with stable low inflation is one of the important prerequisites for sustainable economic development.

Kazakhstan has risen to the fifth group of country risk rankings, which is regularly conducted by the Working Group on Export Credits and Credit Guarantees of the Directorate for Trade and Agriculture of the OECD.

The country in this international structure is represented by the company KazakhExport, a subsidiary of the Baiterek holding.

The Organization for Economic Cooperation and Development (OECD) ranks all countries in the world according to eight risk categories. They are distributed depending on the credit risk assessment based on the analysis of three indicators: the practice of making payments, the financial condition of the country and its economic situation.

This analysis is carried out by the OECD Working Group on Export Credits and Credit Guarantees, which, in turn, determines the cost of financing enterprises of any form of ownership and state bodies of a particular country using resources of export credit agencies.

Kazakhstan for the first time participated in the meeting of this group in November 2017. At that moment, the country was in the sixth group.

Today, as a representative, KazakhExport regularly presents to the OECD members the export potential of Kazakhstan in the context of its financial instruments, indicators and development prospects.

The company also informs international partners on measures of state support for export policy in the country, financial and institutional instruments and the main provisions of the National Export Strategy of Kazakhstan until 2022.

In addition, KazakhExport held a series of negotiations with representatives of leading OECD countries, potentially having the opportunity to make a recommendation to increase the rating, presented materials about the company's efforts to implement international standards, procedures and recommendations in the field of financial and insurance activities of Kazakhstan.

Improving the position in this ranking indicates the formation of a positive perception of information on strengthening the financial stability of Kazakhstan by OECD member countries. It demonstrates developing the banking sector and raising the reliability status of Kazakhstan as an international partner in the fulfillment of financial obligations.

JSC KazakhExport Export Insurance Company is a subsidiary of Baiterek Holding. KazakhExport supports the growth of exports of non-commodity goods, works, services in priority sectors of the economy and the formation of the practice of financial, insurance and non-financial support for Kazakhstan enterprises.

The vision of KazakhExport ESC JSC by 2023 is to become a key development institution in the implementation of the foreign economic policy of Kazakhstan in the Central Asian region and the countries of the Eurasian Economic Union.

The mission of the Organisation for Economic Co-operation and Development (OECD) was established in 1961, headquartered in Paris, France.

OECD mission is to promote policies that will improve the economic and social well-being of people around the world.

The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems.

The Organization works with governments to understand what drives economic, social and environmental change.

OECD measures productivity and global flows of trade and investment, analyse and compare data to predict future trends and set international standards on a wide range of things, from agriculture and tax to the safety of chemicals.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94

Follow us on Twitter @AzerNewsAz

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