2000-01-10 Kazak Financial Markets

Kazakhstan Weekly

Financial Markets

Monday January 10, 2000

Currency Rates

(Note: The National Bank sets the official rate twice a week)

National Bank Begins Return of Recalculated Tenge Deposits

The National Bank of Kazakhstan revealed that domestic banks have begun recovering individual converted deposits that were frozen in banks after the devaluation of the tenge currency on April 5, 1999, Interfax-Kazakhstan reported.

In order to ease the pain of last April's devaluation, the Kazakhstani government and National Bank gave the nation's individual bank depositors the option of keeping their savings in the bank for at least a 9-month period.  In exchange, the central bank promised to recalculate tenge deposits based on the pre-devaluation exchange rate of 88.3 KZT/USD.

The National Bank said domestic banks will begin giving back converted deposits to clients according to the terms stipulated in their contracts.

Depositors will have the opportunity to take their money out in any currency or deposit the readjusted tenge amount for a new term. (Golden Eagle Partners)

Fixed Income

Primary Auctions

On 6 November, the Finance Ministry and the National Bank conducted the 25th auction of dollar-denominated 6-month T-bills. The Finance Ministry raised USD 2.6 million falling short of its target of USD 3.0 million. However, it kept the average yield unchanged.

Latest issues of 6-month $-denominated T-bills

Overall, during the week which ended on 10 November the Finance Ministry raised KZT 2,317.7 million. (IRBIS)

Equities

Last week the volume of deals on the Kazakhstan Stock Exchange (KASE) reached USD 35,800, almost a threefold increase over the previous week. The securities traded during this period included common shares in the Halyk Savings Bank of Kazakhstan (HSBK, listing A), preferred shares in MangistauMunaiGas (MMGZp, listing B) and preferred shares in the Karaganda Margarine Plant (KMRZ, unlisted securities). See the following table for details. (KASE)