business and economy

Kazakhstan may require foreign companies to keep funds with Kazakh banks

By SRI ⋅ August 20, 2009 ⋅  Email This Post ⋅  Print This Post ⋅ Post a comment

(SRI) - Prime Minister Karim Masimov said on Tuesday he asked the government to introduce requirements for foreign companies operating in Kazakhstan to keep a share of their funds with Kazakh banks.

“We must set the amount of the financial resources, that the foreign companies must keep in Kazakh banks,” Interfax quoted Masimov as saying.

Masimov did not provide any details on the planned requirements.

According to local analysts, the measure, if enacted, would likely have a positive impact on the banking sector. At the same time, however, it could adversely impact the investment climate in Kazakhstan and cause investors to curb their activities in Kazakhstan.

Tags: economy

Related articles

• ANALYSIS: Kazakhstan first in, first out of crisis
• Trade surplus up threefold in H1 2010