Kazakhstan: Withdrawals for People's Construction won't touch National Fund savings

Batur Vakhidov, director of the monetary operations department at Kazakhstan's National Bank, told Vlast that withdrawals from the National Fund will be covered by the stabilisation portfolio and will not affect the savings part. He said that in the coming years about 4 trillion tenge, or roughly $8 billion, will be withdrawn from the fund each year, including to finance the presidential infrastructure programme People's Construction. The stabilisation portfolio currently stands at $7–7.5 billion.

Speaking on the sidelines of an expert-analytical discussion club event at Narxoz Business School, Vakhidov said he did not expect withdrawals from the savings portfolio unless oil prices fell sharply. The fund's total assets reach $67 billion. At an expected long-term return of around 6.5%, the fund could earn about $4.2 billion, while annual oil sector revenues are projected at $4–5 billion. He said the fund was not expected to be depleted and could be replenished.

In late October, President Kassym-Jomart Tokayev announced in his annual address to the nation the withdrawal of about 6.5 trillion tenge from the fund for infrastructure and social projects under the same initiative.