GOVERNMENT. Weekly review. Strengthening regulation of financial system. Prevention of unemployment. Promotion of Kazakh language.

ASTANA. January 23. KAZINFORM. /Rizvana Sadykova/ This week started with the meeting of Kazakh President Nursultan Nazarbayev with Prime Minister Karim Massimov, representatives of management of the Financial Supervision Agency and a number of banks of the country. It was devoted to implementation of the Government?s anti-recessionary program.

?Today I have signed a decree on establishment of a working group on monitoring and control over target, legal and effective use of funds of the National Fund of Kazakhstan, which are allocated for ensuring measures on stabilization of economy and financial system?, the President informed. He appointed Chairman of the Kazakh Agency on Regulation and Supervision of Financial Market and Financial Organizations Yelena Bakhmutova as a head of the working group. Heads of law-enforcement bodies will be its members. Nursultan Nazarbayev emphasized that the ?use of the funds should be transparent and open for population?. By the Kazakh President?s Decree, Anvar Saidenov was relieved of the post of Chairman of the National Bank of Kazakhstan due to a transfer to another job. Later Head of the State Nursultan Nazarbayev received new appointed Chairman of the National Bank of Kazakhstan Grigory Marchenko. Future directions of macroeconomic and monetary policy of the National Bank were discussed at the meeting. The President set the leadership of the Bank tasks aimed at overcoming the negative impact of the world crisis on the financial system. On Tuesday, the regular session of the Kazakh Government ?On adoption of joint declaration of the Kazakh Government, the National Bank and the Agency for Financial Supervision on main directions of economic policy for 2009? was held. Kazakh Minister of Economy and Budget Planning Bakhyt Sultanov, Head of the National Bank Anvar Saidenov and Chairman of the Agency for Financial Supervision Yelena Bakhmutova reported on the issue. Joint declaration of the Kazakh Government, the National Bank and the Agency for Financial Supervision on main directions of economic policy for 2009 was adopted. ?I think that the declaration is balanced and strong enough, considering the work of the Government, the National Bank, the Agency and the National holding on stabilization of the economy in the banking sector, construction field, small and medium business and agriculture?, Kazakh Prime Minister Karim Massimov said. The Premier expressed assurance that the action plan is implemented by the commission of the Head of the State and will help to pass 2009 successfully. The economic policy of 2009 will be aimed at the mitigation of the global crisis, stabilization of socio-economic situation in the country. As reported earlier, real GDP growth in Kazakhstan in 2009 is expected to be up to 2%, unemployment level will not exceed 8%, the inflation is expected to be up to 9%. Realization of adopted by the Government, the National Bank and the Agency for Financial Supervision Joint Action Plan on stabilization of the economy and financial system for 2009-2010 will be one of the main instruments in achievement of mentioned goals. Joint Declaration of the Kazakh Government and Financial Supervision Agency on main directions of economic policy for 2009, was also adopted at the session of the Government. ?The obligations guaranteeing system of the second-tier banks will provide redistribution of resources through inter-bank market and extension of access to money market operations?, the Declaration reads. Strengthening of regulation of the national financial sector is to be provided by the Agency for Financial Supervision. New mechanisms of functioning of the pension system taking into account principles of responsibility increase of share-holders and provision of depositors? protection. Prime Minister Massimov chaired sessions of several government agencies this week. The Premier noted that it is necessary to build distinct land policy, as long as economic activity and social order of any state depend on it. The Head of the Government commissioned the Land Resources Management Agency together with the Ministry of Justice to establish land and property cadastres this year and introduce them in the system of e-government. Next meeting was with the Ministry of Agriculture, where Prime Minister Karim Massimov has charged Vice Premier Umirzak Shukeyev to coordinate the system of micro-lending in rural areas. In particular, the PM ordered to coordinate activities of the Ministry of Agriculture, akimats and ?Damu? Fund on the matter, since ?much time has passed from decision making to certain actions?. ?47% of Kazakhstan population lives in rural areas, 18% of them belong to low income groups of population. Unfortunately, implementing the micro-lending program through ?Damu? JSC Fund we managed to cover only 4.3% of them?, Minister of Agriculture Akhylbek Kurishbayev said. ?The main reasons are ? lack of financing and underdevelopment of the system of micro-lending in rural areas. Most of micro-lending organizations are located in district centers and do not work with villagers. Besides, the regions, except Mangystau oblast, do not use budgetary funds for crediting?, the Minister added. At the sitting of the board Minister of Emergencies Vladimir Bozhko reported on the results of year 2008. In comparison with 2007 the number of natural emergencies has increased by 16.6%. The number of victims has risen 4.5 times and the number of dead ? by 6.3%. 94.9% out of 459 dead people are those who drowned in lakes and rivers. He added that there were 2058 heads of ventures and enterprises fined to the amount of KZT 44.7 mln. for violation of rules and norms of technical safety. He admitted that serious accidents continue to take place at mines and ventures. 62 people have died and 40 have got heavy injures at industrial enterprises over this period. The Minister noted also that Kazakhstan rendered humanitarian aid to nine countries. The total sum of it hit USD 9.8 mln. Karim Massimov charged Kazakh Minister of Emergencies Vladimir Bozhko to create an elite division - the mobile group will be used in emergencies. ?I give you an instruction to equip this division with high technologies?, the Minister said to V.Bozhko. ?Kazakhstan will continue investing in space industry?, Prime Minister Karim Massimov has made it public at the board of the National Space Agency of Kazakhstan, which was also held this week. Prime Minister assured that Kazakhstan needs space industry, so it should be developed. Chairman of the Agency Talgat Mussabayev made a report on the activity of Kazkosmos in 2008 and the tasks for 2009. In whole, he considers that 2008 became the most important stage in establishment of Kazkosmos as an independent body of state management in space activity of the country. As reported earlier, the National Space Agency of Kazakhstan was established by the President?s Decree in March 2007. Next session chaired by Prime Minister was a collegium of the Kazakh Ministry of Energy and Mineral Resources. He announced that in connection with entering into force of a new Tax Code it is expected that the Ministry of Energy and Mineral Resources has a big work ahead on elaboration and renegotiation of contracts with subsoil users. ?We repealed such meaning like stability of contracts in the new Tax Code. According to the new legislation, subsoil users work not on the basis of contracts, but on the ground of the current legislation?, Mr. Massimov emphasized. ?The Kazakh Government suggests the Ministry of Energy and Mineral Resources to generalize all offers on ore mining, oil producing industry in order to render state assistance to enterprises of these sectors. ?When you sum up all your suggestions on ore mining and oil producing industry, we will consider them in accordance with the possibilities of the national budget?, the Premier said. According to Mr. Massimov, the year 2009 is very difficult in the context of low prices for energy resources and all our exported goods. The same day a session on the issues of further development of Social Entrepreneurial Corporations (SEC), chaired by Kazakh Deputy Prime Minister Umirzak Shukeyev was held. Representatives of the Kazakh Ministries of Industry and Trade, Finances, Economy and Budget Planning, Energy and Mineral Resources, ?SamrukKazyna? National Welfare Fund, ?KazAgro? National Holding, heads of SEC, deputy governors, responsible for work of SEC took part in the session. Upon the results of the reports of SEC heads on the activity for 2007-2008 was noted that though certain work was done a current progress leaves much to be desired. At the end of 2008 all SEC were included into the system of companies of ?SamrukKazyna? Fund and all handover procedures were accomplished. The Kazakh Deputy Prime Minister set a special working group the task to elaborate a conception of further development of social entrepreneurial corporations, taking into account their missions, defined in the development conception ?Promotion of economic development of the regions by state-private partnership, role of local development institutes?. The mentioned conception will be discussed at the standing session in a week. Within the next sessions, the activity of every SEC in particular, including issues of internal organization and realized and scheduled projects will be discussed in details. In the framework of keeping an eye on social consequences of the financial crisis Prime Minister of Kazakhstan Karim Massimov commissioned the Minister of Industry and Trade to ?continue work together with the shareholders of enterprises? on the prevention of unemployment. ?The problem of employment is topical for us. That is why everything we do is connected with prevention of unemployment?, Prime Minister said at the board of the Ministry of Industry and Trade. According to K. Massimov a number of measures were taken under the commission of the Head of the State: memorandums were signed, additional conditions were created to prevent job cuts at the enterprises. According to Minister of Industry and Trade Vladimir Shkolnik seven breakthrough projects to the amount of USD 1.5 bln (which will provide more than 11 630 jobs) were implemented by 30 corporate leaders in the country in 2008.?In whole 356 projects worth KZT 3 trln are being implemented countrywide. 152 out of them to the amount of KZT 239 bln have been put into operation?, V. Shkolnik said. Finally, Kazakh Prime Minister Karim Massimov set a number of tasks on further development of the state language at the enlarged session of the Kazakh Ministry of Culture and Information held today. According to K.Massimov, to adopt corresponding laws and issue orders is not enough for the language development. Another important point concerns the work on promotion of objects of historical-cultural heritage alongside with the projects on their protection and development. Besides, it is necessary to stimulate the growth of production and demand for the national cultural products. The Head of the Government urged the Minister of Culture and Information Mukhtar Kul-Mukhammed to control over compliance with legislation in the sphere of functioning and development of languages by the Mass Media. ?We should increase circulations of newspapers and magazines in Kazakh language?, the Premier said. Besides, K.Massimov charged to create an online-magazine in the Kazakh language. In the informational sphere it is necessary to increase the quality of Kazakhstani informational product, especially TV. Weekly newspaper in English language and ?Road to Europe? magazine will be launched at the basis of ?Kazakhstanskaya Pravda? newspaper. The Minister of Culture and Information jointly with the Kazakh Agency for Informatization and Communications were charged to make proposals on implementation of digital television.