The choice was not easy
The President of Kazakhstan told what options the Government had to respond to the crisis
At this moment there is a meeting of the President Nursultan Nazarbayev with representatives of the business in Akorda.
At the opening the meeting, the President noted that "now we see a deterioration in our budget, a shortfall in budget revenue in 2015 is estimated at 264 billion tenge". N. Nazarbayev said that it was planned to spent this money on "construction and the state program".
"Therefore, as I said earlier, we have had to reduce the potential costs, in addition to the social", - said Elbasy.
Commenting on the subject of Tenge free float, the President noted that the Government had three options to respond to the worsening situation in the global and domestic economy. "The first is to do nothing, to sit and to wait, to keep the course and wait for the situation to improve. However, the cost of such a policy would be reduction of production in the country, the jobs cuts and burn of the currency, that is, the reserves of the National Fund", - said the President of Kazakhstan.
The second possible option which named Nazarbaev "gradual weakening of tenge within the currency corridor". "In a bad uncertain situation on foreign markets this option also requires large expenditures of foreign exchange reserves, it is once again leads to a non-competitiveness of our businesses", - he said.
"So think, having considered all the possibilities, the most correct is the introduction of free flotation of the tenge, the transition to inflation targeting, as I spoke before in my speeches", - said N. Nazarbayev.
"Let us face it - it is a necessary measure, there was no alternative to it", - said the head of the state.
The President of Kazakhstan noted that "the decision, which was adopted by the Government and the National Bank, is the request of exporters, NCE "Atameken" and small-medium-sized businesses of our country".
Developing the theme, the President added that due to the recovery of competitiveness, "we will be able to preserve jobs in enterprises, millions of our people will remain in place and continue to work".
"The improvement of the situation in the exporting enterprises in the end must have an effect on the level of employees' salaries. Hopefully revenues (in the budget) will be greater and think about it", - said N. Nazarbayev.
In summary, N. Nazarbayev said that "in the long term, we expect to improve the situation, which will allow us to survive the crisis, ensure further economic growth and prevent a recession of the economy of Kazakhstan".
Zhanar Birlikkyzy
Please, join our Telegram channel to stay up to date on the latest news.
Leave comment:
Comments: