ADB Loan Agreement

The draft Law of the Republic of Kazakhstan "On Ratification of the Loan Agreement between the Republic of Kazakhstan and Asian Development Bank" was approved in the Majilis.
 
The loan of EUR 908 mln. 596 thous. will be used for budget gap financing in 2021.

"The loan funds will support the measures of the Government of the Republic of Kazakhstan to combat the consequences of the COVID-19 pandemic and restore the economy. In relation to maturity, the loan is divided into two parts. Part of the loan in the amount of EUR 454 mln. 298 thous. is granted for a period of 10 years, including a 3-year grace period. The remaining part of the loan in the amount of EUR 454 mln. 298 thous. is provided for a period of 5 years, including a three-year grace period. The interest rate is EURIBOR +0.50%," the Minister of Finance of the Republic of Kazakhstan Yerulan Zhamaubayev said during the plenary session of the Majilis.

The Loan Agreement between the Republic of Kazakhstan and Asian Development Bank was signed in accordance with the Presidential Decree dated August 13, 2020.

The loan will be serviced and repaid by the Ministry of Finance at the expense of the budget in accordance with the financial conditions set out in the Agreement.

"These loan funds are important in the conditions of the established budget deficit. The Agreement requires early entry into force, as these funds are reserved for the Republic of Kazakhstan under the special ADB Pandemic Program for 2020," the Head of the Ministry of Finance said.