Ways of solution

Further improvement of the government debt market involves the development of the sector of government securities local agencies .  Municipal bond market to turn into a powerful tool to raise capital can only be taking steps to further improve it:

1) is necessary to solve macroeconomic problems associated with money "under the mattress" that need to be made ​​to work on the economy.

2) to complete the formation of the initial regulatory framework governing the issuance of government securities of local executive bodies, as well as to develop accounting standards that will make local government more transparent structures.

3) municipal securities market needs effectively organized and functioning infrastructure in the face of professionals to design, contract and rating loans.

4) the effective functioning of municipal securities market will promote the development of local government in the country.

The market potential is unlimited municipal securities, and its development can be a key component of economic growth in the coming years. Speaking of the future development of the government securities market, it is impossible not to affect the prospects for borrowing on international capital markets.     Prospects of Kazakhstan Eurobond will depend on the national approach to the regulation of foreign loans and on development trends of the world market after the recent crisis. The relative profitability of euro bonds to domestic government bonds will depend, first, on the comparative dynamics of returns, second, on the growth rate of foreign exchange rates.     In the future, access to the Eurobond market and quasi-sovereign borrowers in the face of local government. But to begin with local agencies to get enough experience to the issue of securities in the domestic market. Kazakhstan will form the system of state regulation of the stock market, allowing for effective protection of the rights and legitimate interests of investors. To create effective mechanisms for the implementation of this task will be, above all, strengthening the role of the National Commission of the Republic of Kazakhstan on securities as a body of state regulation of the securities market. To this end, during the implementation of the Program: will expand the powers of the National Commission in the regulation of activity of professional participants of the securities market to grant her the right to self-imposition of administrative sanctions for the data to the participants;

So, speaking of the outlook for further development of Kazakhstan's economy, expectations of government and the prospects for economic growth can make the following analysis.     This year, the rate of real GDP growth is lower than the previous year, which was a result of the liquidity crisis of the world financial system. At the end of six months it was 5.1%, which corresponds to the planned corridor of 5-7%. The increase was observed in all sectors of the economy of Kazakhstan: Industrial and agricultural production increased by 3.8% and 4.2%, respectively, building services - by 12.5%. Continued growth of service industries, the growth of communications services was 23.4%, real estate operations - 5.1%. These indicators suggest growth of Kazakhstan's economy, despite the instability of the world economy.     Overall it is expected that the figure will continue for the next year. Certainly, the external shocks in the first half of 2008 revealed systemic problems in the economy and led to a slowdown in economic growth. This experience learned some lessons against which involve adjusting economic policy. In the future, the government accelerated the transition of growth to moderate the pace of development, that is, to maintain real GDP growth of 5-7%. Such growth will ensure that the strategic objectives identified in the Strategy of Industrial and Innovation Development of Kazakhstan for 2003-2015 GDP to triple by 2015 to 2005.     Today it is impossible to say so categorically that the growth of the economy of Kazakhstan is due not only to rising commodity prices. For instance, in the GDP share of primary sector in 2007 was only fifth. Including oil and gas sector - 18.5%. In the I half of 2008, the share of primary sector was 22.5%. Currently, a significant contribution to economic growth are making such non-primary sectors such as construction, services.

In addition, the decline in world prices for food and energy prices can have a positive impact. Given that the formation of prices in the domestic market is significantly affected by imported inflation, respectively, lower prices on world markets will have a downward pressure on the domestic price level.     As for the non-oil sectors, the government targeted policies aimed at stimulating their development. This should gradually reduce the economy's dependence on primary sector of the economy in general and oil in particular. And the transition to the new concept of the formation of the National Fund, which occurred two years ago, will reduce the risk of impact from fluctuations in oil prices for the budget.     By order of the President of the Government drafted a stabilization plan of action to ensure the effective management of economic growth in the case of slowing global economy and a possible reduction in the prices of some export products. These measures will help to maintain the positive dynamics of development and achieve the planned parameters.     In addition, the projected GDP growth rate of 5-7% in the medium term into account the decline in world oil prices. So there is no reason to expect a slowdown in the economy lower than forecast, as in 2009, and in subsequent years.     Primary sector provides the opportunity to make "quick money" and, therefore, considered the most attractive for investors. That's where most of the investment goes. As of the beginning of the year, the gross inflows of foreign direct investment in the mining industry was $ 12.64 billion, with more than 90% - in the oil and gas sector, while the manufacturing sector is directed only $ 1.3 billion of investments in agriculture - $ 46.6 million     In addition to strategic goals, needs and their practical implementation. Why and developed a program "30 corporate leaders", which became in fact one of the stages of the strategy, which has already entered the stage of implementation. Entry into the active phase of implementation of projects invest in the program will ensure the growth of the economy through the development of non-oil sectors of the economy. Therefore, the effect does not take long.     Government intervention in the economy in such a period is justified. It can act as a stimulus of private activity, take the form of financial support, which, in fact, been made in the past year. But it should be noted that the government has refrained from giving the private sector a direct grant of financial assistance.

It was decided that the support measures will not only focus on one-stage care industries, but also to ensure macroeconomic stability and boost economic activity.     After analyzing all of the above, we can make some conclusions. Currently, the stock market in Kazakhstan has shown stable growth. During 2007 there was an increase of capitalization shares KASE, which is associated with the emergence of new issuers and revaluation of Kazakh companies. Debt market of Kazakhstan is one of the leaders among the CIS countries, both in absolute terms and in the economy. On January 1, 2008, the total volume of transactions in non-government securities, included in the official list of "A" and "B» KASE reached on shares - 8 924 400 000 U.S. dollars, on the bonds - 4,302,500,000 U.S. dollars. The volume of transactions on bonds increased by 42.7%, with shares - 2.2 r. Rapidly growing investor base. As of early 2008, pension assets under investment management totaled 1,211,949 million tenge, increasing by 16.11%, the total investment portfolio of insurance companies - 159 381 000 000 tenge, banks - 770 312 000 000 tenge, respectively.     Total investment portfolio PSMPs increased in 2007 by 18.10% to $ 82,146 million tenge. As of January 1, 2008 there were 183 on the market of investment fund assets, which increased four-fold to 199,527 million tenge. Daily volatility in global financial markets increases the volatility of the local capital markets, which raises the need for more investment opportunities investors. The participants discussed the problem of forming a diversified investment portfolio and risk management. According to the speakers, addressing these issues requires an increase in the number of traded in the stock market securities of Kazakh companies.     As well as creating conditions for the emergence of alternative investment instruments - derivatives and security bond markets are in Kazakhstan practically not developed, and various structured products (certificates for basic equity securities and exchange traded funds (ETF) for the most liquid stocks of non-resident) . That investors have the ability to effectively use hedging mechanisms, you must make the appropriate changes to Kazakh legislation and bring it into harmony with international law and generally accepted business practices in the international securities markets. Why in Kazakhstan's legislation should be introduced rules on offsetting mutual anti-directed investor and counterparty requirements of derivative securities in the event of the liquidation of one of the parties.

Additional funded pension funds should be allowed, subject to certain limitations legislation of Kazakhstan to conclude agreements on the credit support. As for the possible continuation of the crisis, the government is already working to reduce the possible negative effects of crises in the future. A plan for the stabilization of action to ensure the effective management of economic growth in the case of slowing global economy and a possible reduction in the prices of some export products. A system of control macroeconomic risks. In order to timely response to external shocks and preventive measures implemented a system to monitor the ongoing economic processes in the country and the world. The fund for distressed assets, designed to help improve the quality of bank assets, reduce risk and sustaining its operations .Thus, in general, in the case of the continuation of the crisis in the country will cope. At least the government has pledged to make every effort to ensure that there was no reduction of economic growth to less than five percent.