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World Bank Approves $1Billion Loan To Kazakhstan

Kazakh President Nursultan Nazarbaev -- seen with the Belarus and then-Kyrgyz presidents -- has apparently won lots of World Bank confidence.
The World Bank has approved $1 billion in budget support for Kazakhstan to help the government implement its economic program.

Motoo Konishi, the World Bank's regional director for Central Asia, said approval of the funds, called a "Development Policy Loan," reflects confidence by the World Bank in the "direction of economic policies and reforms" of the Kazakh government.

The World Bank said in a statement that the loan will help support the government's economic program by focusing on fiscal policy, management of the budget, and banking regulation.

"Kazakhstan is borrowing $1 billion from the World Bank to finance the 2010 republican budget deficit, support growth, and maintain higher social commitments stipulated in the budget," Bolat Zhamishev, Kazakhstan's minister of finance, was quoted in the statement as saying.

Kazakhstan has forecast economic growth this year of 1.5-2 percent.

The World Bank says it has provided 35 loans to Kazakhstan worth more than $5.2 billion since 1992.