Official Statements:

Since the summer of 2007, the global financial system has been undergoing a severe downturn. Despite a lack of access to external debt markets, the Kazakhstan banking sector has successfully overcome the external challenges and has been able to meet its external and domestic debt redemptions.

The recent further contraction of liquidity and declines in share prices have caused a steady deterioration in the quality of banking assets, a reduction in lending to the real economy and, ultimately, a decline in economic activity of local enterprises.

In the above context, the Government of Kazakhstan announced a set of comprehensive proposals to further strengthen the capitalization and liquidity of the Kazakh banking sector, in accordance with the decisions taken recently by various world leaders.

Four systemically important banks will be provided with the additional capital needed to further enhance their capital adequacy: Alliance Bank, BTA Bank, Halyk Bank and Kazkommertsbank. Two foreign-owned banks (ATF and Bank CenterCredit) will also benefit.

The total amount of capital injected under this plan in the form of common and preferred shares will reach $5 billion. Existing shareholders will be offered preferred subscription to these shares. In cases they do not manage to provide sufficient capital, the Kazakh Government is ready to become the shareholder of the above-mentioned banks for an equity stake of up to 25% for each. If additional capital is still needed, the Government will provide it in the form of preferred stock and subordinated debt.

The SamrukKazyna National Well-being Fund will represent the Government as shareholder and will therefore receive the announced amount ($5 billion) from the National Fund.

The Prime Minister emphasized that his Government does not intend to remain a shareholder on a long term basis and will eventually dispose of its shares at market price.

In addition to this first measure, the National Fund will provide SamrukKazyna with another $5billion of liquidity by subscribing to a bond which will be issued by SamrukKazyna. These funds will be directed towards lending to the real economy (especially SME's and infrastructure projects). Initially, these funds will be deposited with selected banks and over time, provide support to the real economy while alleviating the pressure on banks to roll-over existing loans.

The National Bank of Kazakhstan will also lower minimum reserve requirements and expand the list of financial instruments acceptable as collateral against loans.

Finally, the Assets Stabilization Fund, designed to help improve the average quality of the loan portfolios of banks, will begin operations shortly. The Fund will be capitalized with $1 billion.

On October, 17 in Astana in the framework of the Conference “Commonworld: progress through the diversity” the Head of the Ministry of foreign affairs of the Republic of Kazakhstan held several bilateral meetings

In the framework of the Ministerial Meeting of the Conference “Common world: progress through the diversity”, held in Astana on October, 17, the Minister of foreign affairs M.Tazhin held several meetings with the Heads of foreign delegations, participated in the Forum, in particular with colleagues from  Bosnia-Herzegovina Sven Alkalaj, Macedonia Antonio Miloshosky, Slovakia Jan Kubis, Montenegro Milan Rocen, and also with the Minister for Human Rights and Ethnic Minorities of Czech Republic Dzamila Stehlikova, counsellor in the rank of the Minister for international affairs of the Government of Bangladesh Iftihar Ahmed Chowdhury, US Ambassador to the United Nation Zalmay Khalilzad.

During the meetings foreign guests expressed profound gratitude to Kazakhstan for organising and convocation of this meeting, noting its actuality and opportuneness.

Present-day issues of modern international relationships, current condition and perspective trends of activation of bilateral relationships were also discussed.

Later on the same day the Minister M.Tazhin signed a Protocol on collaboration between the Ministry of foreign affairs of the Republic of Kazakhstan and the Ministries of Macedonia and Montenegro.

On October, 22 in Astana the presentation of the state programme “Path to Europe” was held for the representatives of the diplomatic corps. On October, 22 the presentation of state programme “Path to Europe” was held under the chairmanship of the Deputy Minister of Foreign Affairs of the Republic of Kazakhstan Kairat Sarybay for the diplomatic corps accredited in Kazakhstan.

In his speech kazakhstani diplomat noted, that “the main idea of the programme is based on intensifying  technological, energy, transport cooperation between Kazakhstan and European countries, also in the field of technical management, metrology and in preparation process for Kazakhstan’s OSCE Chairmanship in 2010”.

According to the opinion of K.Sarybay “in consequence of “Path to Europe” programme” Kazakhstan will move to a new level of strategic partnership with leading European countries in political, economic and humanitarian spheres, creating the conditions for increasing goods exchanges with Europe and joining the European integration experience and embracing its institutional-legal reforms.

At the same time in the framework of realization of this programme annual exchange of visits at diverse level is also planned.

During the presentation representatives from several Ministries and authorities of the Republic of Kazakhstan addressed a meeting expounding main directions of the programme and also the implementing plan of it.

President Nursultan Nazarbayev Chaired the 14th Session of the Assembly of the People of Kazakhstan in the Palace of Peace and Accord. Addressing the participants of the session, the President stated the Assembly of the People of Kazakhstan (APK) has been turned into constitutional body with large powers over the years of its existence.

”It got a constitutional status last year and a right to elect deputies to the Mazhilis. It is called for increase the role both of the Assembly and the Parliament,” the head of state highlighted.

Recently the President signed the Law “On Assembly of the People of Kazakhstan”. It acknowledged the great work of the Assembly in achieving peace and harmony in Kazakhstan. “It is a unique law that does not have analogues among the other laws in the world. It plays an important role for the future of our country. Its provisions founded the basis of our interethnic policy,” Nursultan Nazarbayev stressed.

Nowadays, the APK is facing a number of important practical tasks to be set in the coming years, particularly, elaboration of a doctrine of national unity, further strengthening of the APK and its regional bodies’ work, bringing up the next generation and extension of necessity of the Kazakh language learning.

The President emphasized the importance of Kazakhstan’s chairing the OSCE in 2010. In 2011 Kazakhstan will also chair the Organization of the Islamic Conference (OIC). “The APK should actively participate in this work. This organization can show how to strengthen interethnic dialogue. Many countries will share our experience in strengthening inter-ethnic and inter-religious harmony. It can be used among all post-conflict societies on the Eurasian space,” the head of state stressed.

The Assembly of Kazakhstan’s People significantly contributed in preserving peace and strengthening accord in the country. Thanks to its activity we successfully achieved the formation of civilian identity along with preserving cultural originality of all Kazakhstani ethnic groups.

Nowadays, we are also facing a task to strengthen the unity of the people able to advance rapidly to progress and prosperity. We should keep in mind we have a common future. And it depends on the unity of all Kazakhstani people,” Nursultan Nazarbayev concluded.

In the course of the session its participants made an address to the citizens of Kazakhstan. The message reads, in particular: “Over the years of its independence Kazakhstan created a unique model of interethnic and inter-religious accord on the basis of the proved state national policy pursued by the first President of the country Nursultan Nazarbayev and due to the Kazakhstani people’ s tolerance. It is based on a civil, spiritual and cultural unity of all ethnic groups and consolidated role of the Kazakh people.

We are a unified nation, having realized that all Kazakhstani people are responsible for the country’s future. It is important for us not only to preserve but strengthen what we have achieved in the sphere of public harmony. Today, we should preserve peace and accord as our main national achievements and basis for the prosperity of all Kazakhstani people.”

Italian Prime Minister Silvio Berlusconi visited Astana with a Short-Term Working Visit. Within the framework of the visit President Nursultan Nazarbayev met with Prime Minister of Italy Silvio Berlusconi. Issues on bilateral cooperation were discussed at the meeting.

Italian Prime Minister made a tour of Astana. Silvio Berlusconi highly appreciated the work of architectures and constructors who created a modern city, new capital of Kazakhstan on the left side of the river.