KZBlog

Thanks to the for posting this news.

President Nazarbayev gave an interview to Reuters last Friday. In it, he touched upon the crisis in the banking sector, NATO, foreign relations, and the energy sector. He also discussed the issue of succession, saying:

I would like to clarify this nonsense that the first president, that is me, can stay in power for an unlimited number of terms. That does not mean I will be here forever. After a five year period I will have to take part in an election in 2012. And if the people give me their support, I can stay. But I have been in this job for so many years and after all I might hand it over to the next generation, so to say, when I see that we need new, fresh people and so on. This is an electoral process…We have a lot of them here. … I think I should not give any names now to avoid upsetting anyone.

Obviously he is trying to deflect criticism that he has been named President for Life, but the hint that he may not seek another term is a rare comment heard in this country.

Other excerpts can be found here. Probably most interestingly, on the problem of Kazakhstan banks which owe collectively 4 billion dollars due this year to various lenders, Nazarbayev said,

The government has not extended a single kopeck to support banks’ liquidity itself. And the banks themselves did not need it. Of course they wanted us to boost their liquidity using state money but we will not do this. They have to deal with it themselves.

This seems to belie the fact that the government was urged to cut its budget at the end of last year to free up 4 billion dollars. Perhaps that money is being used a reserve. Or some have suggested that that money will be given to banks in the form of a development fund for small and medium businesses to boost the domestic economy and give banks some business. In the interview the President does cite the government mortgage program which has spent 1 billion dollars to give people low-interest mortgages and assist in affording housing.

In answer to those who believe Kazakhstan is nationalizing its oil industry, Nazarbayev offered reassuring words:

…Kazakhstan has no desire to nationalise any assets like in Latin America…If investors break their contracts themselves, and Kazakhstan sees that the country is losing out on something with regard to a certain contract … then we’ll say: ‘Dear friends, either pay us compensation or give us shares back to compensate for the money we lost’. Kazakhstan does not want to nationalise or take anything away from anyone