The Asian Development Bank (ADB) has approved a $500 million equivalent policy-based loan to support Kazakhstan in strengthening fiscal sustainability and enhancing financial sector resilience.
The loan supports subprogram 2 of the Fiscal Governance and Financial Sector Reforms Program, which builds on progress made under subprogram 1 and focuses on two areas: strengthening fiscal sustainability, management, transparency, and governance; and promoting banking resilience and capital market development.
“The program advances key reforms to bolster public financial management and further develop the financial sector,” said ADB Country Director for Kazakhstan Utsav Kumar. “These measures will buttress macroeconomic management, enable greater private sector participation, foster economic diversification, and promote sustainable and inclusive growth.”
To strengthen fiscal sustainability, the program supports more robust fiscal rules and better management of fiscal savings. It promotes more effective budgeting, planning, and monitoring, while integrating gender and climate considerations. Policy actions include unifying Kazakhstan’s dual legislative framework for public–private partnerships and enhancing governance and transparency in managing public financial resources, including the National Fund of the Republic of Kazakhstan.
To enhance financial sector resilience, the program strengthens regulatory and supervisory frameworks. It also bolsters financial stability by improving crisis preparedness and recovery planning, while deepening credit and market-based financing. These measures will help expand access to long-term finance, especially for micro, small, and medium-sized enterprises.
Kazakhstan joined ADB in 1994. Since then, ADB has committed over $8 billion in loans, grants, and technical assistance to support the country’s development priorities, including infrastructure modernization and private sector participation. Regional cooperation initiatives under the Central Asia Regional Economic Cooperation (CAREC) program are an integral part of ADB’s operations in Kazakhstan.
