Kazakhstan legalises €1.4bn in capital amnesty

By bne IntelliNews February 5, 2016

As of January 31, Kazakhstan legalised undocumented property and shadow capital worth KZT588bn (€1.4bn) in a special campaign, Finance Minister Bakhyt Sultanov has said. In the past two months, the volume of legalised assets amounted to KZT160bn, he added.

The campaign to legalise undocumented property and shadow capital was launched in September 2014. In late 2015, the campaign was extended for one year and will now terminate at the end of 2016. The reason for the extention was the poor progress of the campaign. According to original estimates, the government expected to bring as much as $10bn out of shadow. This target will be hard to achieve although the dynamics of property legalisation seems to be gathering pace as the data for the past two months shows. However, Kazakhs are rather reluctant to disclose their assets hidden from the authorities either in the country or abroad, given an unstable economic environment and concerns over political stability in the long run as the country’s authoritarian system has been built exclusively around President Nursultan Nazarbayev. The president, who was re-elected with 98% of the vote on a 96% turnout in the early election in 2015, has repeatedly said that he will stand for president for as long as the people "trust" him and his health "allows" him and has not so far named a successor.

This is the third capital amnesty launched by Kazakhstan. In 2001, the country legalised assets worth $480mn and $6.8bn in 2006-2007. In order to increase the awareness about the ongoing campaign, Sultanov ordered the regional and central-level authorities to strengthen explanatory work.

At present, the government is considering as much as 27,000 requests for the legalisation of assets worth KZT300bn. The amnesty applies to foreign financial assets, securities and stakes in foreign legal entities as well as to property located abroad and undocumented property in the country. Property and capital that were received as a result of corruption and crime will not be legalised.

Related Articles

Ukraine's central bank cuts key policy rate to 12.5%

The National Bank of Ukraine (NBU) will cut its key policy rate by 0.5 percentage point (pp) to 12.5% per annum from May 26. The move is consistent with the pursuit of inflation ... more

World Bank forecasts a 0.4% y/y decline in Belarus's GDP for 2017

The Belarusian economy will decline by 0.4% year-on-year in 2017, followed by a modest growth of 0.7% in 2018 and 1.2% in 2019, the World Bank forecasts in its Belarus Economic Update published on ... more

EIB and Belarus sign Framework Cooperation Agreement

The European Investment Bank (EIB) and Belarus inked the Framework Agreement on Cooperation on May 15, which paves the way for the lender to invest up to €200mn in Belarusian projects, the Foreign ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss