TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
Astana Calling No.474
1. A WEEKLY ONLINE PUBLICATION / WWW.MFA.GOV.KZ
ISSUE NO. 474 / FRIDAY, SEPTEMBER 16, 2016
PresidentAppointsNewPrimeMinister,
ReshufflesGovernment
Also InThe News
In Focus:
Foreign Policy Priorities
NazarbayevPaysTributetoLateUzbek
PresidentinSamarkand
2. PresidentAppointsNewPrimeMinister,ReshufflesGovernment
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Kazakh President Nursultan Nazarbayev opened the fall government
session Sept. 8-9 by assigning top officials to new posts and
announcing a number of budget changes.
Nazarbayev named former First Deputy Prime Minister and Minister
ofEconomyBakhytzhanSagintayevasprimeminister,replacingKarim
Massimov. Sagintayev served as minister of economic development
and trade, first deputy chairman of the Nur Otan Democratic Party
and minister of regional development.
Massimov assumes chairmanship of the National Security
Committee, replacing Vladimir Zhumakanov. The two-term prime
minister previously headed the Cabinet of Ministers and Presidential
administration.
The reshuffle included Zhumakanov becoming an assistant to the
president and secretary of the Security Council under the President
and Askar Mamin, former head of Kazakhstan Temir Zholy, the
national railway company, appointed First Deputy Prime Minister.
In addition, General Staff Chief Col. Gen. Saken Zhasuzakov was
named Minister of Defence replacing Imangali Tasmagambetov, who
was appointed Deputy Prime Minister. Most ministers retained their
jobs except Minister of Justice Berik Imashev who was appointed to
chairtheCentralElectoralCommission,replacedbyMaratBeketayev,
until recently Deputy Chief of Presidential Staff. The Ministry of Civil
Service was reorganised into the Agency on Civil Service and Fighting
against Corruption, now led by Chairman Kairat Kozhamzharov, while
theformerMinisterTalgatDonakovwasreappointedasDeputyChief
of Presidential Staff. Also a new Ministry of Religious Affairs and Civil
Society has been established, with the former Secretary of Security
Council Nurlan Yermekbayev to lead one.
Nazarbayevoutlinedanumberofspecifictasksforthecomingperiod.
Noting the government’s main goal will be improving the standard of
living, he specifically cited entrepreneurship and called for further
development of relevant programmes.
“I instruct the government jointly with akims [governors] to take
measures for the organisation of cooperatives in rural areas, which
should ensure the marketing and processing of agricultural products,”
he said.
Replenishing the state budget with 830 billion tenge (US$2.5 billion)
by the end of the year will aid in the shift from crisis management to
implementing strategic development objectives, he added.
President Nazarbayev (left) and newly appointed Prime Minister Bakhytzhan Sagintayev
Nazarbayev suggested using the last quarter to prepare a new
agribusiness development programme based on Agribusiness 2020.
An additional 97 billion tenge (US$287.1 million) will be allocated to
improve agricultural subsidies and support agribusiness, specifically
veterinary safety.
In an effort to diversify the economy, the President called on the
government and regional governors to focus on export stimulation
and development, specifically the need to execute agreements with
China on the Silk Road Economic Belt. The action will subsequently
allow the nation to focus inward, specifically in conjunction with the
Nurly Zhol economic stimulus programme, and he requested an
additional 74 billion tenge (US$219 million) to accelerate ongoing
infrastructure projects.
“We started the second five-year industrial programme . . . and a new
five-year plan should be oriented on non-primary export products.
The main criteria for selecting projects should be export capacity,
high performance and innovation. I instruct the government to
allocate the necessary additional funding to support the programme
in the amount of 112 billion tenge (US$331.5 million),” he said.
He added the National Bank and government must take measures
to restore long-term lending activity in light of stabilisation
in the currency market. The World Bank, European Bank for
Reconstruction and Development, Asian Development Bank and
Islamic Development Bank are planning to allocate up to $7 billion
in the next five years through a cooperation programme approved in
2014 and he suggested the possibility of expanding the programme to
attract additional funds to the economy.
Focusing on individuals’ needs, Nazarbayev noted a record 9 million
square metres of housing was opened in 2015 and an additional 10
million square metres are anticipated by the end of the year. Because
needs remain high, he proposed developing a system to integrate all
existing housing programmes.
The President called for a revised central government budget for the
current year allocating an additional 380 billion tenge (US$1.1 billion)
to implement priority projects and activities and for a hold on the
National Fund savings.
“In 2016, I instruct reducing the amount of the guaranteed transfer
on 400 billion tenge [US$1.2 billion] and the targeted transfer on 50
billion tenge [US$148 million]. The government needs to revise the
costs of executing my orders for the coming three-year period in the
draft budget for 2017–2018, which will be submitted to Parliament,”
he said.
3. NazarbayevPaysTributetoLateUzbekPresidentinSamarkand
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President of Kazakhstan Nursultan Nazarbayev paid his respects to
the recently deceased president of Uzbekistan, Islam Karimov, during
a visit to Samarkand, Uzbekistan, Sept. 12, according to Akorda’s press
service.
Nazarbayev laid flowers at Karimov’s grave, met with the late leader’s
family and offered condolences on his behalf and on behalf of the
people of Kazakhstan. He had had a relationship with Karimov based
on friendship, understanding and sincere support, Nazarbayev said.
Kazakhstan’s President stressed Karimov’s historical role in the
formation of Uzbekistan following the collapse of the Soviet Union.
“I am confident that the next generation will always remember Islam
Karimov,” he said. “His solid heritage, such as establishing the new
independent country, will be studied by your descendants and his
deeds will be written down in the history of Uzbekistan with golden
letters.Hewasaleaderwhosenamewasassociatedwiththeformation
of the [contemporary Uzbek] state and growth of the economy as well
as improving people’s welfare. We lost a great personality.”
As Uzbekistan’s first president, Karimov played a crucial role in
strengthening strategic ties with Kazakhstan as the region embraced
independence, Nazarbayev said.
“The people of Kazakhstan and Uzbekistan have always supported
each other,” Nazarbayev explained. “We signed the agreement on
eternal friendship at Turkestan’s Mausoleum of Khodja Akhmed
Yassauiin1998.Ourrelationshipsarebasedonthishistoricagreement.
Kazakhstan has always been and will always be close to the Uzbek
people. We share our joys as well as our troubles with you.”
During his visit, Nazarbayev also met with acting President of
Uzbekistan Shavkat Mirziyoyev, during which Nazarbayev again
stressed Karimov’s incomparable contribution to the development of
the friendly relationship the two countries now enjoy.
“All his activities served to further strengthen the friendship between
our people, because we share a common history, religion and
culture,” Nazarbayev told him. “It is important to be able to preserve
these values. We have always been able to find mutually acceptable
solutions to any issues, both in the course of bilateral meetings and
within the framework of international organisations. It is necessary to
continue to strengthen our fraternal relations.”
Nazarbayev and Mirziyoyev also touched on topics of bilateral
significance as well as regional and international issues.
Kazakhstan and Uzbekistan have signed 173 bilateral documents
to date, including the significant 1998 bilateral Treaty of Eternal
Friendship and the 2013 bilateral Agreement on Strategic Partnership.
During Nazarbayev’s April meeting with Karimov in Tashkent, the two
leaders called jointly on all other Central Asian governments to rely on
the universally accepted norms of the international water law as fixed
by UN conventions, a challenging issue in the region. Nazarbayev
and Karimov also reiterated their support for the stabilisation of
Afghanistan and measures to foster economic development in their
regional neighbour.
“All his activities served to further
strengthen the friendship between our
people, because we share a common
history, religion and culture,” Nazarbayev
told him. “It is important to be able to
preserve these values. We have always
been able to find mutually acceptable
solutions to any issues, both in the course
of bilateral meetings and within the
framework of international organisations.
It is necessary to continue to strengthen
our fraternal relations.”
President Nursultan Nazarbayev lays flowers at the burial place of late Uzbek President Islam Karimov
4. InFocus: Foreign Policy Priorities
Welcoming Investment
Korea, Kazakhstan to share road building expertise
Korea Expressway Corporation and KazAvtoZhol national company
intend to exchange experience in reconstruction, construction, and
repair of highways and to develop cooperation in the implementation
of technologies in road construction.
Chairman of KazAvtoZhol Yermek Kizatov and General Director on
Foreign Projects of Korea Expressway Corporation Min Jeong have
signed a memorandum on mutual understanding and cooperation in
the field of road-transport construction and implementation of new
technologies.
The Kazakh company clarified that using the technologies will
increase labour productivity and reduce costs in the company’s
operation.
Min Jeong noticed that the cooperation in the road-transport field
between Kazakhstan and Korea will open new opportunities for
development and implementation of intelligent transportation
systems in Kazakhstan.
“Today, we are signing a memorandum on mutual understanding
and cooperation, and I am sure that this event will improve our
partnership, relations and development of long-term, effective and
mutually beneficial cooperation between KazAvtoZhol and Korea
Expressway Corporation,” Kizatov said.
Korea Expressway Corporation is one of the major companies in
road construction internationally. It was established in 1969 and as
of today, controls networks of expressways with a total length about
4,000 kilometres. The company plans to increase the number up to
6,000 kilometres by 2020. (astanatimes.com)
KAZNEX INVEST plans trade mission to Dushanbe
The national agency of export and investments KAZNEX INVEST
plans to present the industrial potential and export potential of
Kazakhstan by organising a trade mission to Dushanbe, Tajikistan
Oct.19-21.KAZNEXINVESTinvitesKazakhenterprisesandbusiness
associations wishing to develop trade relations with Tajikistan
to participate in a trade mission. A business forum and bilateral
meetings of Kazakhstan’s producers and Tajikistan’s importers are
planned. (bnews.kz)
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Strengthening UN & Int’l Security
Kazakhstan condemns nuclear test in DPRK
On Sept. 9, Kazakhstan’s seismic stations that are members of
the International Monitoring System (IMS) for verification of the
Comprehensive Nuclear Test Ban Treaty (CTBT) registered a seismic
event with the epicentre close to Pungeri nuclear test site in North
Korea. Analyses confirmed that a testing of nuclear weapons took
place there.
Kazakhstan strongly condemns the actions of North Korea that
violate UN Security Council resolutions.
Kazakhstan is co-chair with Japan of the ninth Conference on Article
XIV of the CTBT Japan and chairs the International Code of Conduct
against Ballistic Missile Proliferation. Kazakhstan believes that the
extremely irresponsible actions of North Korea have a negative
impact on the nuclear disarmament process and pose a threat to
security, both regionally and globally
Read full text here: http://bit.ly/2cw4KIx
Hosting Astana Expo 2017
100 countries confirm participation in EXPO 2017
One hundred countries have confirmed they will participate in EXPO
2017, said EXPO 2017 National Commissioner Rapil Zhoshybayev
during a Sept. 8 briefing at the Central Communications Service
(CCS).
“Thus, the plan has been fulfilled,” he said citing a registration dossier
submitted by Kazakhstan. “However, our work is not completed. The
campaign on attracting international participants will be continued
until the end of the year. In addition, currently activities are being
conducted on appointing commissioners of national sections and
signing participation agreements.”
During the last two years, Kazakhstan was involved in attracting
international participants. The Kazakh side conducted negotiations
with leaders in the sphere of renewable and alternative energy
sources, as well as with developing states, inviting them to take part
in the exhibition and use this platform to share their experience and
advanced technologies. Many leading states in the sphere of green
technologies have already confirmed participation. Among them are
China, Brazil, Switzerland, France, the United Kingdom, Spain, Italy,
Finland, Saudi Arabia, India, Vatican and Germany. (astanatimes.
com)
Back to Contents
5. Also InThe News...
• President Congratulates Muslims on Eid al-Adha
President Nursultan Nazarbayev congratulated Kazakhstan’s
Muslims Sept. 12 on the Islamic holiday Qurban Ait (Eid al-Adha)
and visited the Hazrat Sultan Mosque in Astana. He wished
happiness, wellbeing and success to his fellow citizens, noting for
10 years Kazakhstan has celebrated Qurban Ait and Orthodox
Christmas as public holidays.“I congratulate you on Holy Qurban
Ait. This bright holiday symbolises kindness and good deeds and
calls for people to have mercy and compassion. This holiday fills
our hearts with love to close people and makes us care for those
who need it. The celebration of Qurban Ait strengthens the moral
principles of our society and acquaints us with spiritual traditions,”
he said.Nazarbayev emphasised all Kazakh achievements became
possible due to the unity and peace in the country.“Each religion
calls for unity, mercy and respect for each other. A real Muslim is
the one who helps people, society and his Motherland, as well as
respects all the religions of the world,” he said. “Over 25 years of the
successful development of Kazakhstan, Qurban Ait has become a
remarkable holiday strengthening inter-ethnic unity in the society.”
(akorda.kz)
• GGG earns 36th win, 23rd consecutive knockout
World Boxing Association (WBA), International Boxing
Organisation (IBO), International Boxing Federation (IBF) and
World Boxing Council (WBC) middleweight world champion
Gennady “GGG” Golovkin (36-0-0) earned his 36th career win and
23rd consecutive knockout Sept. 10 over Britain’s Kell Brook (36-
1-0). He forced the latter’s corner to throw in the towel in the fifth
round in front of his 19,000 home crowd at London’s O2 arena. For
Golovkin, it was his biggest cash prize fight of more than $4 million.
“Thank you very much, London,” said Golovkin after the match.
“I always bring a big drama show. I knew that Kell was a very good
fighter. But …he did not hurt me at all. There were a lot of punches,
but I didn’t feel them. I respect Kell and thanks to his corner. I am
a boxer. So now I want a unification fight. I would absolutely come
back to the U.K. to fight and I would like to fight Billy Joe Saunders
for his belt. But I am open to everybody.” (astanatimes.com)
• 12th Eurasia International Film Festival to be held Sept. 24-30
in Almaty
The 12th Eurasia International Film Festival will be held Sept. 24-
30 in Almaty. More than 80 films will be shown and Arab films of
different genres will be screened for the first time in the event’s
history. The festival will be held under the motto “Love as the basis
of human life and a path for the harmonisation of cultures” and will
bring together countries of Asia, Europe and the global community.
“In the year that marks the 25th anniversary of the independence of
Kazakhstan and the millennium of the city of Almaty, these seven
days will become a meeting place and the beginning of creative
projects for film professionals from all continents,” said festival
president Rashid Nugmanov. This year, the organisers plan to
bring the festival to the streets by making it more democratic and
popular. The part of the festival called The Love for the City will be
screened in public places such as cafés and parks and will be free to
attend. (astanatimes.com)
• World Skills Kazakhstan-2016 competition opens in Astana
The World Skills Kazakhstan-2016 competition organised by the
Kazakh Ministry of Education and Science and Kasipkor national
holding officially opened Sept. 12 in Astana. World Skills is an
international non-profit movement among 75 countries which aims
to promote the benefits of and need for qualified professionals
through competitions, joint projects and shared experiences. One
hundred and forty participants from 16 regions of the country have
come to the capital to take part in the event. The competition has
15 categories, such as gastronomy, restaurant service, confectionery
and hairdressing. The winners will be included in the national team
and defend Kazakhstan’s honour in the European tournament in
Switzerland. Kazakhstan became the 70th country of the World
Skills Competition in 2014. The largest international professional
skills competition was held in Kazakhstan for the first time the
following year and was attended by more than 70 competitors from
all over the country. (pm.kz)
• Glass bottomed mountain attraction to be completed by 2020
near Almaty
Step into the Void, a glass-bottomed attraction in the Almaty
Mountains, will be constructed in 2018-2020, said Almaty city’s
tourism department head Timur Duisengaliyev during the Sept. 6
MedeuInvestForum.“AlmatyresidentsknowwheretheShymbulak
Ski Resort is located. There is a higher cableway and a black rock
called Chkalov Peak. We want to make an additional station on the
top of that cliff and make a unique attraction there. “Maybe it will
be extended up to Nursultan Peak; this way we want to extend the
tourist season. Step into the Void is an attraction where a person
steps on a glass floor and he is practically over the abyss. It is such
an adrenaline rush and a good observation deck. The catering point
will be located next to the attraction. The project model is popular
abroad; most likely, we will have a group of investors. We began
talks with the new head of the Shymbulak Ski Resort and perhaps
they will join this project as well,” he added. Step into the Void will
be fully financed by the investors. The cost of the project will be
about 30 million euros (US$33.8 million) and the payback period
will be five-seven years. Similar attractions already exist in China
and Europe, where visitors experience the dizzying emotion of
stepping into the abyss. (astanatimes.com)
• Five travel agencies purchase 74,000 EXPO 2017 ticketsAstana
EXPO
2017 has signed contracts with five travel agencies which will
purchase more than 74,000 tickets for the exhibition. The company
held a series of information rounds across Kazakhstan Sept. 4-11 for
about 100 tour operators from around the world. Representatives
of large tourist companies from Russia, China, Europe, Asia and
the Commonwealth of Independent States (CIS) participated
in the activities. The tour was divided into five sections including
Astana sightseeing, national parks, historical and cultural places,
the spaceport and gambling zones.The format acquainted foreign
travel agencies with tourist routes in the western ring of the country,
the Silk Way and East and Northern Kazakhstan, as well as the cities
of Almaty and Astana. (bnews.kz)
• Five travel agencies purchase 74,000 EXPO 2017 ticketsAstana
EXPO
2017 has signed contracts with five travel agencies which will
purchase more than 74,000 tickets for the exhibition. The company
held a series of information rounds across Kazakhstan Sept. 4-11 for
about 100 tour operators from around the world. Representatives
of large tourist companies from Russia, China, Europe, Asia and
the Commonwealth of Independent States (CIS) participated
in the activities. The tour was divided into five sections including
Astana sightseeing, national parks, historical and cultural places,
the spaceport and gambling zones. The format acquainted foreign
travel agencies with tourist routes in the western ring of the country,
the Silk Way and East and Northern Kazakhstan, as well as the cities
of Almaty and Astana. (bnews.kz)
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