Kelimbetov: Revaluation of Kazakh credit rating is a normal phenomenon

The reduction of the credit rating of Kazakhstan by Standard & Poor's international rating agency is normal, the head of the National Bank of Kazakhstan, Kairat Kelimbetov, said. 

“This is a normal phenomenon, because the ratings agencies base their reports on certain economic trends in the country. If the report is based on the information that an oil-producing country with a high price of oil will have high economic growth, then the country's reliability in loan servicing will be high. And when the oil price falls it is an essential factor for a reduction of economic growth,” he explained. 

“The same evaluation was conducted regarding Bahrain, Oman, Russia as well. It should be treated normally, as we have a reserve of safety,” Kelimbetov stressed. He said that Kazakhstan's gold-exchange reserves exceed $100 billion. “We produce a lot of oil, and will produce even more. We also have low public debt in the quasi-public sector, which suggests that Kazakhstan is a reliable borrower,” Trend cited him as saying. 

He said that the government of Kazakhstan will increase the budget deficit. “We have the possibility of borrowing capital on foreign markets, including the market of Islamic finance. Although the rates may be higher than in the previous period, we believe that the situation is normal. In addition, no changes happened in the evaluation of our country by other ratings agencies such as Moody's and Fitch,” Kelimbetov concluded.