World Bank loan of $ 400 million to boost private sector-led growth and sustainable economic recovery in Kazakhstan

NUR-SULTAN, December 9, 2021 – The World Bank Board of Directors today approved a $ 400 million loan to Kazakhstan to support its transition to a more competitive market economy and for a more sustainable post-pandemic recovery.

In accordance with the Kazakhstan government strategy 2050, Transition to a green economy 2050, and the National Development Plan 2025, this Financing of the Development Policy (FDP) The loan supports political and institutional changes aimed at creating a more dynamic private sector, a more responsible public sector and a more sustainable economic transition.

The DPF supports the reforms initiated by the government in the areas of competition policy, public procurement and the fight against corruption, and supports a more efficient enabling environment for the digital economy and the financial sector. To help the country embark on a more sustainable growth path, the DPF also supports “green” policy initiatives, particularly in renewable energies, the emissions trading system and environmental protection. .

“We are pleased to step up our support for Kazakhstan at a critical time, as the country gradually shifts from a state-led, carbon-intensive economy to a more sustainable and green growth path, driven by a competitive private sector, ”said Jean-François Marteau, World Bank Country Director for Kazakhstan. “This funding also supports recent initiatives to make public institutions more transparent, efficient and accountable in order to build public confidence.”

Before the COVID-19 pandemic, the Kazakh economy was already experiencing slowing growth rates and slow productivity growth. As Kazakhstan recovers from the worst contraction in more than two decades, the pandemic-induced crisis also offers an opportunity to rethink and correct the course of the country’s development strategy.

The government’s reform program, backed by the World Bank, will have a positive impact on people’s lives. Improved public procurement and better competition policies, as well as better functioning financial markets and access to digital telecommunications will attract greater private sector participation.

The reforms supported by the DPF will make it possible to achieve better energy efficiency, reduce greenhouse gas emissions and promote the use of renewable energy sources, in particular through private investments. More accountable and transparent public institutions will also help to open up fiscal space for social spending that can benefit the well-being of the citizens of Kazakhstan.

Since Kazakhstan joined the World Bank Group in 1992, aid has totaled more than $ 8 billion, in sectors ranging from finance to social services. Next year, the World Bank and Kazakhstan will mark three decades of partnership.

Source link

Previous Green bank loan sets up Forza for energy-efficient office renovation
Next PH secures new $600m loan from World Bank – Manila Bulletin