Kazakhstan is CIS leader in attracting funding from international development banks
Kazakhstan is the most attractive investment magnet among the CIS countries for international development banks. The country's share in the total funding amounted to 46%, Strategy2050.kz reports with reference to Ranking.kz.
In the third quarter of 2019, the volume of investment and project financing by international development banks in the private sector in the CIS countries increased by 81.2% compared to the second quarter of 2019 and amounted to $1.87 billion.
In general, between January – September 2019, 9 international financial institutions approved new financing in the CIS countries for 100 projects for a total amount of $3.8 billion, an increase of 81.2% compared to the same period in 2018 (2.1 billion US $).
Over 46.9% of the total funding in the CIS countries accounted for the European Bank for Reconstruction and Development. It was followed by the Eurasian Development Bank (25.2% of the total financing) and the Asian Development Bank (12.3%).
Meanwhile the largest share of approved investment project financing was in Kazakhstan: 45.6% significantly exceeding other CIS countries. Ukraine was second (23.2%) and Russia was third (11.6%).
According to the results of three quarters of 2019, international development banks approved financing in Kazakhstan for 30 projects for a total amount of $1.7 billion, surpassing last year’s indicator by more than 2.7 times. In the same period of the previous year, the amount of financing amounted to 628.2 million US dollars.
The main investors in Kazakhstan are the European Bank for Reconstruction and Development (EBRD), the Eurasian Development Bank (EDB) and the Asian Development Bank (ADB).
The EBRD financed the private sector in Kazakhstan for US $ 616.3 million, or 35.4% of the total amount of funding by international development banks in Kazakhstan. As of the end of 2018, the total amount of EBRD investments in Kazakhstan amounted to 7.7 billion euros, and the active portfolio was 2.4 billion euros.
The amount of approved EDB investment and project loans in Kazakhstan for January-September 2019 amounted to 538.5 million US dollars, or 30.9% of the total amount of financing of IDBs in the Kazakhstan. As of February 1, 2020, 37.2% of the Eurasian Development Bank investment portfolio fall on Kazakhstan, second only to Russia (40.9%).
The Asian Development Bank for January-September 2019 funded the private sector in Kazakhstan for $468.6 million (26.9%).
Image credit: Voxball.news
