|Other large iron pipes|
Kazakhstan, officially the Republic of Kazakhstan, is a country in Central Asia, with a minor part west of the Ural River and thus in Europe. Kazakhstan is the world's largest landlocked country by land area and the ninth largest country in the world. It has borders with (clockwise from the north) Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan, and also adjoins a large part of the Caspian Sea. The terrain of Kazakhstan includes flatlands, steppe, taiga, rock canyons, hills, deltas, snow-capped mountains, and deserts. Kazakhstan has an estimated 18 million people as of 2014, given its large land area, its population density is among the lowest, at less than 6 people per square kilometer (15 people per sq. mi.). The capital is Astana, where it was moved in 1997 from Almaty. Nomadic tribes have historically inhabited the territory of Kazakhstan. This changed in the 13th century when Genghis Khan occupied the country as part of the Mongolian Empire. Following internal struggles among the conquerors, power eventually reverted to the nomads.
The banking industry of the Republic of Kazakhstan experienced a pronounced boom and bust cycle over 2000s decades. After several years of rapid expansion in the mid-2000s, the banking industry collapsed in 2008.
Several large banking groups, including BTA Bank J.S.C. and Alliance Bank, defaulted soon after. Since then, the industry has shrunk and been restructured, with system-wide loans dropping to 39% of GDP in 2011 from 59% in 2007. Although the Russian and Kazakh banking systems share several common features, there are also some fundamental differences. Banks in Kazakhstan have experienced a lengthy period of political stability and economic growth. Together with a rational approach to banking and finance policy, this has helped push Kazakhstan’s banking system to a higher level of development. Banking technology and personnel qualifications alike are stronger in Kazakhstan than in Russia. On the negative side, past stability in Kazakhstan arose from the concentration of virtually all political power in the hands of a single individual – the key factor in any assessment of system or country risk. The potential is there for serious disturbances if and when authority passes into new hands. As of May 2014, Kazakhstan attracted $190 billion in gross foreign investments since its independence in 1991 and it leads the CIS countries in terms of FDI attracted per capita. One of the factors that attract foreign direct investments is the country's political stability. Per the World Bank's report, Kazakhstan is among the top 40% of countries in the world that are considered the most politically stable and free of violence.
|Agriculture||Grain (mostly spring wheat and barley), potatoes, vegetables, melons & livestock.|
|Manufacture||Oil, ferrous and nonferrous metals, machinery, chemicals, grain, wool & coal.|
|Services (Including financial)||56.9% (2013 estimate)|
|Kaz Trans Oil||Oil|
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The Kazakhstan Stock Exchange is a stock exchange located in Almaty, Kazakhstan. The exchange was founded in 1993. On November 15, 1993, Kazakhstan introduced its own currency, the tenge. The next day, November 17, 1993, the National Bank of Kazakhstan and 23 local leading commercial banks took a decision to found a currency exchange. The previously existing Center for execution of inter-bank currency transactions (Currency exchange) used to be a structural unit of Kazakhstan's National Bank. The main task assigned to the new exchange was to set up and develop the national currency market following the introduction of the tenge. The exchange was incorporated as a closed joint-stock company on December 30, 1993, under the name Kazakhstan Inter-Bank Currency Exchange. With the Act of the Republic of Kazakhstan "On Making Changes and Additions to Some Legal Acts of the Republic of Kazakhstan Regarding Joint-Stock Companies" of July 10, 1998 coming into effect, the ban prohibiting the exchange to operate trading in foreign currencies and financial instruments other than securities, was lifted, which made it possible to affiliate the AFINEX to the exchange. The relevant decision was taken at a general meeting of shareholders on January 6, 1999, and on March 16, 1999, an appropriate state re-registration of the reunited exchange was effected. On December 15, 2006, KASE was authorized as a special trading floor of the regional financial center of Almaty. On August 23, 2007, a general meeting of KASE shareholders took a decision to commercialize KASE. As part of KASE commercialization, the former voting principle "one shareholder – one vote" was scrapped and the traditional principle "one share – one vote at the general meeting" was adopted.
Global financial crisis
Kazakhstan characterizing by a high level of development of market institutes, presence of the essential industrial complex, the developed bank system, possessing the considerable investment resources, the first has faced financial crisis and has most of all suffered from its displays. For 17 years of its development, Kazakhstan can be integrated into world system of trade and economic relations. It has appeared that it has also negative lines. In particular, owing to world slump in production there was a falling of the prices for oil, metals and other traditional goods of our export. The bank system of the country more developed and integrated into the world financial market and actively used modern forms of hypothecary crediting, investments into a securities market, development of the share market and, first of all, has suffered from financial shocks in the world market. As a result, today Kazakhstan has the serious problems connected with considerable insolvency of borrowers under hypothecary credits and decrease in profitableness of banks.
Under the influence of financial crisis rates of economic growth were slowed down. Owing to reduction of volumes of external loan and fluctuations in the raw markets rates of development of real sector of economy have decreased. As investment programs of many branches and enterprises have been based on extra resources, volumes of investments into a fixed capital were constantly reduced in 2008. Inflation growth was observed in consumer market during 2008. There was a rise in prices for food and services. Thereof monetary incomes of population had been decreased; moreover, retail crediting is reduced and toughened in second level banks? It has led to decreasing consumer demand, and preservation of this tendency can put further additional pressure upon rates of increase of business activities. With a view of preservation of a standard of well-being of population measures on restraint of rise in prices for the basic goods are taken, memorandums with suppliers and distributors are concluded, regional stabilization funds on the basic foodstuff are created.
Negative tendencies connected decreasing the number of acting enterprises and decrease of volumes of output also remain in the sector of small and medium-sized businesses. Positive changes are expected with implementation of problems of the plan directed on the solution of problems of crediting of small and medium-sized businesses, with the introduction of the new tax code and prolongation of the moratorium on checks. During reduction of a rate of unemployment, the tendency to increase in share of the self-occupied population is observed on labor market.
Further, in the conditions of industrial production and consumer demand reduction, this category of population can recruit ranks of the unemployed. Moreover, deficiency of qualified staff in real sector of economy that influences competitiveness of the Kazakhstan enterprises still remains now. The main mission of the government for 2009 is non-admission of growth of unemployment and employment increase according to plan problems. Corresponding memorandums have been concluded with large employers.
Kazakhstan’s practical measures on overcoming consequences of the world economic crisis. Now each country of the world will mobilize available internal reserves for crisis overcoming as collective measures within the frameworks of EU, G20 and other international organizations and associations have not notable results. Kazakhstan resists to crisis the second year. In October 2007 the plan of action on ensuring stability of economic development has been made. 4.6 bln. Dollars directed on completion of “sharing” building, food safety, agriculture development and support of small- and medium-sized businesses have been allocated for these purposes.
By the 16th century, the Kazakh emerged as a distinct group, divided into three jüz (ancestor branches occupying specific territories). The Russians began advancing into the Kazakh steppe in the 18th century, and by the mid-19th century, they nominally ruled all of Kazakhstan as part of the Russian Empire. Following the 1917 Russian Revolution and subsequent civil war, the territory of Kazakhstan was reorganized several times. In 1936 it was made the Kazakh Soviet Socialist Republic, considered an integral part of the Soviet Union. Kazakhstan was the last of the Soviet republics to declare independence following the dissolution of the Soviet Union in 1991. The current President, Nursultan Nazarbayev, has been leader of the country since then, and is characterized as authoritarian, with a government history of human rights abuses and suppression of political opposition.
Kazakhstan has worked to develop its economy, especially its dominant hydrocarbon industry. Human Rights Watch says that "Kazakhstan heavily restricts freedom of assembly, speech, and religion," and other human rights organizations regularly describe Kazakhstan's human rights situation as poor. Kazakhstan is populated by 131 ethnicities, including Kazakhs (who make up 63 percent of the population), Russians, Uzbeks, Ukrainians, Germans, Tatars, and Uyghurs. Islam is the religion of about 70% of the population, with Christianity practiced by 26%; Kazakhstan officially allows freedom of religion, but religious leaders who oppose the government are suppressed. The Kazakh language is the state language, and Russian has equal official status for all levels of administrative and institutional purposes. By 2006, Kazakhstan had become the dominant nation of Central Asia economically, generating 60% of the region's GDP, primarily through its oil/gas industry. Kazakhstan has vast mineral resources.
The tenge is the currency of Kazakhstan. It is divided into 100 tï?n. The ISO-4217 code is KZT. After the collapse of the Soviet Union, attempts were made by most republics to maintain a common currency. Some politicians were hoping to at least maintain "special relations" among former Soviet republics, or the "near abroad". Other reasons were the economic considerations for maintaining the ruble zone. The wish to preserve strong trade relations between former Soviet republics was considered the most important goal. The break-up of the Soviet Union was not accompanied by any formal changes in monetary arrangements. The Central Bank of Russia was authorized to take over the State Bank of the USSR (Gosbank) on 1 January 1992. It continued to ship USSR ruble notes and coins to the central banks of the fourteen newly independent countries, which had formerly been the main branches of Gosbank in the republics. The political situation, however, was not favorable for maintaining a common currency. Maintaining a common currency requires a strong political consensus in respect to monetary and fiscal targets, a common institution in charge of implementing these targets, and some minimum of common legislation (concerning the banking and foreign exchange regulations). These conditions were far from being met amidst the turbulent economic and political situation. During the first half of 1992, a monetary union with 15 independent states all using the ruble existed. Since it was clear that the situation would not last, each of them was using its position as "free-riders" to issue huge amounts of money in the form of credit. As a result, some countries were issuing coupons in order to "protect" their markets from buyers from other states. The Russian central bank responded in July 1992 by setting up restrictions to the flow of credit between Russia and other states. The final collapse of the ruble zone began when Russia pulled out with the exchange of banknotes by the Central bank of Russia on Russian territory at the end of July 1993. As a result, Kazakhstan and other countries still in the ruble zone were "pushed out". On November 12, 1993, a decree of the President of Kazakhstan, "About introducing national currency of Republic of Kazakhstan", was issued. The tenge was introduced on 15 November 1993 to replace the Soviet ruble at a rate of 1 tenge = 500 rubles. In 1991 a "special group" of designers was created: Mendybay Alin, Timur Suleymenov, Asimsaly Duzelkhanov and Khayrulla Gabzhalilov. As such, November 15 is celebrated as the "Day of National Currency of Republic of Kazakhstan".
In 1995, a tenge printing factory was opened in Kazakhstan. The first consignment of tenge was printed abroad, in the UK. The first coins were minted in Germany. In 1993, the first series of coins were introduced in denominations of 2, 5, 10, 20 and 50 tiyin featuring the national arms and were struck in bronze. 1, 3, 5, 10 and 20 tenge were struck in cupro-nickel and depicted stylized and mythical animals. The coins of this period circulated alongside tiyin and low denomination tenge notes of equal value. In 1998, a new series of coins was introduced, which excluded the tiyin having 1 tenge being the smallest denomination. 100 tenge were later introduced in 2002 replacing the equivalent notes. An irregular 2 tenge coin was also introduced later in 2005. In 2013 the alloy of lower denomination coins was altered. Commemorative coins are issued in denominations of 20, 50, 100, 500, 1,000, 2,500, 5,000 and 10,000 tenge. Silver and gold bullion coins exist in denominations of 1, 2, 5, 10, 20, 50 and 100 tenge. Many of the 20 and 50 tenge commemorative's are also struck in cupro-nickel and occasionally make it out into general circulation as a side coinage with face value.The National Bank of Kazakhstan issued banknotes of new series in 2006. They have the same values as the previously existed ones. The 2006 series is far more exotic than its predecessors. The obverse is vertical and the denomination is written in Kazakh. All denominations depict the Astana Bayterek monument, the flag of Kazakhstan, the Coat of arms, the handprint with a signature of president Nazarbayev and fragments of the national anthem. The main differences across each denomination are only the colors, the values, the under print patterns. On the contrast, the reverses are more differentiated. The value is written in Russian. Each denomination shows a unique building and geography of Kazakhstan in the outline of Kazakhstan border. The first printing of the 2,000 and 5,000 tenge notes issued in 2006 had misspellings of the word for "bank" (the correct spelling "?????" banki was misspelled "?????" banqi). The misspelling was a politically sensitive issue due to the cultural and political importance of the Kazakh language. The National Bank of Kazakhstan issued a new series of tengé banknotes dated 2011, 2012, 2013 and 2014 in denominations of 1,000-, 2,000-, 5,000-, and 10,000-tengé. On 1 December 2015, a new 20,000 Tenge banknote was introduced. It contains the issue date of 2013, and is a commemorative note to celebrate the 20th anniversary of the introduction of its national currency, but was not issued until 2015.
|National Song||"Meniñ Qazaqstanım"|
|Currency||Kazakhstani tenge (KZT)|
|GDP||451.282 Billion USD|
|GDP Growth Rate||1.2 Percent|
|GDP Per Capita||$25144.878 (PPP)|
UTC+05:00 — western Kazakhstan
UTC+06:00 — eastern Kazakhstan
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
Kazakh (Qazaq) 63.1%
President – Nursultan Nazarbayev
Prime Minister – Bakhytzhan Sagintayev
|Website||Go to the web|
|Public Debt||21.08 Percent|
|Unemployment Rate||5.228 Percent|
|Labor Force (Occupation)||-|