Why is the share of grants so small with a total amount of nearly one billion dollars? - Deputy on the framework agreement project with the International Development Association
During the discussion, Deputy Aisarakhan Abdibaeva expressed concern about the low share of grants within this amount. She proposed to increase the grant component to 200–300 million dollars and questioned why the document lacks a detailed analysis of projects, conditions, and areas such as support for small and medium-sized businesses, the social sector, as well as measures to reduce unemployment and poverty.
Deputy Minister of Finance Nurbek Akzholov explained that the reduction in the share of grants is related to the country's increasing level of development and improvement in its credit rating, which stands at B+ with a stable outlook. He added that grants are gradually being replaced by concessional loans, which are becoming the main financing tool. The framework agreement acts as a reserve mechanism, allowing access to concessional funds and preventing their redistribution to other countries. Specific projects, their names, conditions, and details will be developed separately, and complete information will be available later, once the feasibility studies are completed. All projects will be coordinated with the deputies and relevant committees.
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