Kazakhstan to borrow in yen, finance ministry cites budget needs
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Kazakhstan's finance ministry plans to borrow in Japanese yen, citing budget deficit coverage as the primary reason. The move is expected to have a positive side effect on the tenge exchange rate, according to Kapital.kz.
Borrowing Rationale
The finance ministry explained that the borrowing is necessary to finance the budget deficit, as reported by LSM.kz. The decision to raise funds in yen rather than other currencies was made after assessing market conditions and the ministry's debt portfolio.
Yen Loan Impact
Kapital.kz reported that the yen-denominated loan could have an unexpected positive effect on the tenge exchange rate. The exact amount and terms of the borrowing have not been disclosed, but the ministry stated that the loan will be raised in the near future.
What's Next
The finance ministry is expected to finalize the loan agreement in the coming weeks. It remains unclear how the yen borrowing will affect Kazakhstan's overall debt profile and whether further foreign-currency loans will be needed.
3 sources
Kazakhstan to borrow in yen, finance ministry cites budget needs
