Weekly review. 10th anniversary of ?Nur Otan? National Democratic Party. Session of Kazakh Security Council. Kazakhstan welcomes Prime Minister of Czech Republic

ASTANA. February 13. KAZINFORM / Balym Issenova / The most important event in our county?s life is the 10th anniversary of ?Nur Otan? National Democratic Party and enlarged session of the Bureau of Political Council of the Party with participation of leader of the Party, Kazakh President Nursultan Nazarbayev. One of the important agenda issues was disbursement of National Fund resources. The leader of the Party called on Party?s regional braches to assume control over the disbursement of the local budget funds.

?Against the backdrop of crisis every tenge should be used effectively and bring economic benefits?, the leader of the Party stressed. He reminded that the Party Commission on control over effective use of funds had been established. The commission is headed by Chairman of the Financial Supervision Agency Yelena Bakhmutova. N. Nazarbayev also attracted the Party members? attention to one more important decision taken by our Government. The National Welfare Fund ?Samruk-Kazyna? became the owner of controlling stakes of two Kazakh banks - the Alliance Bank and the BTA. The National Welfare Fund will provide additional capitalization of the bank to the amount of KZT 251.3 bln Thus the state saved the financial institutions from bankruptcy, with their liquidity and ability to continue working for the country's economy. It is important to clearly understand that this measure was the only effective way out of the adverse situation of the banks. Moreover, this Government?s decision is a temporary measure, aimed to help the banks successfully overcome their problems and get out of the crisis without losses. After all, they both occupy significant place in the domestic financial system as an active lenders of the real sector of economy. Thus, the share of the BTA on the crediting market is 25%, while that of Alliance is 8%. Here we do not speak about the amount of services provided to the population and domestic companies by them. The Government could not prevent the default of banks, which really threatened them in the near future. Thus, according to the Minister of Finance Bolat Zhamishev, "recently JSC" Alliance Bank" has faced with obligations and the risks to its sustainability". A Chairman of the National Bank of Kazakhstan G. Marchenko, said that "recently the BTA has maintained itself on the short-term measures and support from the National Bank". At the enlarged session of the Bureau of the Political Council of ?Nur Otan? People?s Democratic Party the President also raised the issue of Kazakh tenge devaluation. The drop in the tenge is a necessary and strategic measure of the Government and the National Bank. Otherwise the real sector of the country?s economy would not be able to compete with the producers of foreign countries (Russia, Ukraine, China, and etc) which products became cheaper than ours by 30%. This would lead to bankruptcy of Kazakhstani commodity producers, reduction of working places and growth of unemployment. In President?s view, the Kazakh tenge will become strong as soon as the prices for energy resources are stabilized. The Head of the State considers devaluation of the tenge as painful but necessary anti-crisis measure. As we know, the National Bank takes some other measures for ensuring stability at the financial market. As top priority measures the next actions will be taken: refinancing rate will decreased to 9.5 percent from February 5, 2009; minimum reserve requirements to second-tier banks will be decreased from 2 to 1.5 percent on internal liabilities and from 3 to 2.5 percent on other liabilities; smooth-running operation of the payment system will be ensured. The National Bank will continue allotment of a necessary short-term liquidity to banks on security of confirmed instruments; bureaus of exchange will be ensured by sufficient volume of foreign currency in cash. Our President?s first priority is people?s welfare and speaking at the enlarged session of the Bureau of the Political Council of ?Nur Otan? People?s Democratic Party, N. Nazarbayev said that state expenditures on social security services and social care will raise twofold and hit KZT 1 trln in the nearest future. The 2009-2011 budget provides with means for annual increase of salaries and social payments, the President said. N. Nazarbayev also noted that the Government foresees special compensation mechanisms which will provide profitability of pension savings of the population. ?The state exerts every effort to fulfill all social obligations?, the President assured. Here, I would like to match the words with some examples from the regions. In Pavlodar over 36 thousand people will secure assistance amounted to KZT 438 mln under the program ?Social help to the population?. One of the main directions of the program is material assistance and services for persons with disabilities. For social rehabilitation disabled people are provided with individual helpers and specialists of sign language. The factory on production of wheelchairs for disabled was launched in Astana. The factory sponsors are ?Kazakh Federation of Persons with Disabilities? and ?Maira? German company under the support of Akimat of Astana. Specialists of the factory will consult customers on instructions for use of wheelchairs and safety arrangements. Program on reduction of mortgage loans has started in the country. People who have mortgage loans can apply to authorized banks, defined by ?Samruk Kazyna? National Welfare Fund. If your housing is less than 120 sq m, the only one you own and if you are off - budget employee you can switch your loan into tenge by 11% and by 9% if you are a civil servant. ?We should bend every effort to let the party fulfill the promises given to the electorate. ?Nur Otan? has all necessary resources and mechanisms for it. Consolidation and ensuring unity of Kazakhstan society are the key aims of the Party. Summing up the results of Nur Otan Party?s 10 year activity we can say with confidence that the party succeeded in uniting various groups of population, mobilizing Kazakhstani people to solve nationwide issues. ?Nur Otan? has become a consolidating, responsible, national-democratic organization timely responding to all problems of our society?, Nursultan Nazarbayev concluded. Among the latest important developments is the session of the Security Council held in Astana. The progress of implementation of the Strategy of National Security was under the session consideration. In case of need and taking into consideration the current situation amendments to the Strategy were made. Reports of the Minister of Economy and Minister of Emergencies and Minister for Labor and social protection were listened to. This week our country welcomed Prime Minister of the Czech Republic Mirek Topolanek. Mr. Topolanek met with President Nursultan Nazarbayev and Prime Minister Karim Massimov in Astana. Heads of the Governments of Kazakhstan and Czech Republic discussed wide spectrum of issues of bilateral cooperation. As is known, currently Czechia chairs the Council of the European Union. The European Union is interested in the diversification of ways and sources of energy supply. The issue of their transportation from the territory of Kazakhstan is one of the most important points in the development of bilateral cooperation.