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Prime Minister Of Kazakhstan Chairs Meeting Of The Board Of The Eurasian Development Bank

Prime Minister of Kazakhstan chairs meeting of the Board of the Eurasian Development Bank

Prime Minister of Kazakhstan Askar Mamin chaired a meeting of the Council of the Eurasian Development Bank (EDB) via video conference – June 30, 2020 The meeting was attended by authorized representatives of the bank’s shareholders: Deputy Minister of Finance of Armenia Armen Airapetyan, Minister of Finance of Belarus Yuri Seliverstov, Minister of Finance of Kyrgyzstan Baktygul Jeenbayeva, Minister of Finance of Russia Anton Siluanov,
Minister of Finance of Tajikistan Faiziddin Kakhhorzoda. Opening the meeting, Askar Mamin thanked Andrei Belyaninov, the recently resigned Chairman of the EDB Board, for his fruitful work and wished success to the newly appointed Head of the Bank Nikolai Podguzov. During the meeting, the Council approved the Regulations on the EDB Digital Initiatives Fund. The purpose of the new Fund is to assist the Bank’s participating countries in the formation of digital transformation tools and practices through participation in the development and financing of projects and integration of information resources, implemented within the main areas of the Eurasian Economic Union’s digital agenda until 2025. In accordance with the best practices of international development banks, the Human Resources Committee was established under the EDB Council, the regulations of which were approved at the meeting of the Council. The Council summed up the work of the Eurasian Development Bank in 2019 – the current investment portfolio of the EDB increased by 25.6% to $ 4.3 billion. The balance portfolio increased by 31% to $ 2.8 billion. The countries with the largest share in the portfolio are Russia (45.7%) and Kazakhstan (40.1%). Following the results of 2019, the sectoral structure of the current investment portfolio has not changed – the largest share belongs to projects in the energy sector (21.1%), transport (18.9%), financial sector (18.7%). In 2019, agreements were signed on 27 new projects totalling $ 1.3 billion. The Bank has actively developed its presence in all participating States and has financed national development projects and projects with significant integration benefits, taking into account the existing strategy. The share of integration projects in the bank’s portfolio exceeded the target and reached 54.4%. The total amount of the bank’s borrowings amounted to $ 2.6 billion. In 2019, the EDB placed five bond issues totalling 80 billion tenge, five bond issues totalling 23 billion rubles, and a second issue of Eurobonds worth $ 201 million. Given the significant growth of the investment portfolio, the EDB was able to maintain its quality at the appropriate level. The share of provisions in the balance portfolio in 2019 decreased from 3.2% to 2.4%. At the end of 2019, the bank’s income amounted to $ 68.9 million. Return on equity – 3.8%. For the development of investment activity in Kazakhstan, it is important to sign an agreement with the National Bank of Kazakhstan, which will allow the EDB to attract funds with a limit of 200 billion tenge. International rating agencies praised the financial stability of the EDB: Standard & Poor’s upgraded the bank’s rating to BBB, Moody’s upgraded Baa1, and Fitch gave BBB+. Source: Government of Kazakhstan

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