About 70% of business in Kazakhstan is about go bankrupt, said President of Chamber of Commerce and Industry Yerlan Kozhasbay at conference “Crisis and ways to overcome them,” initiated by Chamber of Commerce and Industry on February 10, 2009.
“According to estimates by various experts, about 70% of businesses came close to bankruptcy. There is no such devastation of small and medium-sized businesses in developed countries, despite the crisis. In these countries, large business corporate collapses and small and medium businesses stay afloat,” said Kozhasbay.
“Meanwhile Kazakhstan is trying to save big business. We all know that GDP growth in Kazakhstan has depended on foreign loans. From 1999 to 2007 more than 80% of the gross domestic product was created. Reduction of external borrowing led to a slowdown in GDP growth and the outflow of foreign loans, which means that there is a threat of collapse of economy,” said Yerlan Kozhasbay.
President of CCI thinks that the banking sector needs to coordinate with the business community to determine further actions. In addition, it is necessary to recognize the bankruptcy of failed projects. “Debt is increasing as these projects do not repay the banks. The first step is to stop the progressive debt and write off of losses of failed projects,” concluded Kozhasbay.
