Development Bank of Kazakhstan was presented by Deputy Chairman of the Management Board Duman Aubakirov, who made a report on the experience of DBK in supporting customers and employees in the fight against the consequences of the pandemic.In his speech, Duman Aubakirov drew attention to the fact that the DBK's anti-crisis strategy was based on the experience gained in 2008 and 2014-15. In particular, the crisis caused by the Covid-19 pandemic has brought many problems: the pace of production of many projects has decreased, as well as necessary specialists from other countries were not able to physically attend the projects due to the closure of borders. The cost of debt capital has increased with high capital intensity of projects.
In order to reduce the negative impact of the pandemic on the Bank's projects and financial stability, DBK has promptly developed and implemented an anti-crisis plan consisting of preventive and comprehensive measures. The plan includes such main measures as restructuring of foreign currency loans of borrowers, which is carried out depending on the availability and receipt of appropriate preferential funding in the national currency, deferred payments on the principal debt and interest, and cancellation of penalties for late performance of financial and non-financial obligations.
At the moment, intensive work is being carried out with all interested parties on most of the points of the Plan, the implementation of which requires coordinated actions of all participants – the Development Bank, government agencies and enterprises.
The Plan is regularly updated and amended as necessary to reflect amendments.
In order to ensure health safety in connection with the spread of coronavirus infection, the Bank's employees have been transferred to remote work since March 16 this year. During the period of remote work, all functional duties of employees are performed in full. Performance efficiency of the Bank has not changed due to the transition to a remote work, including projects that are financed without the physical presence of borrowers. Thus, according to the results of the first half of the year, the Bank financed large investment projects in the amount of KZT 176.3 bln.
The possibility of implementing a remote form of work was achieved by introducing an electronic digital signature and bringing the paperless document flow to 80% (except only for those documents that need to be stored on paper - these are the title deeds for property pledged to the Bank, loan facility agreements, etc.).
"The Bank regularly conducts systematic monitoring of both the epidemiological and socio-economic situation in the country and the world. All necessary measures are being taken to mitigate the consequences of the pandemic for the Bank's customers and employees. As necessary, these measures are reviewed and supplemented," Duman Aubakirov added.
The SCO IBA was established in accordance with the resolution of the Council of State Leaders of the SCO member states to establish a mechanism for financial support and servicing of investment projects in the economic space of the SCO member states on October 26, 2005. The main areas of activity are organization of financing of investment projects, development of interaction with authorized financial institutions of the SCO observer states and dialogue partners, cooperation with leading economic structures operating in the SCO space (the SCO Business Council, the Eurasian Development Bank), exchange of experience and cooperation in personnel training.
Besides DBK, SCO IBA includes VEB.RF, the State Development Bank of China, RSK Bank (Kyrgyz Republic), Habib Bank Limited (Pakistan), Indian Infrastructure Finance Company, State Savings Bank of the Republic of Tajikistan "Amonatbank", National Bank for Foreign Economic Activity of the Republic of Uzbekistan. The dialogue partners are the Eurasian Development Bank, Belarusbank Savings Bank and Development Bank of Mongolia.
Development Bank of Kazakhstan JSC (DBK) is a National Development Institute for the modernization and development of non-resource and infrastructure sectors of the economy of Kazakhstan, established in 2001. Main activities: development of production infrastructure and manufacturing industry, promotion and attraction of foreign and domestic investment in the country's economy. DBK is one of the largest investment operators of State Program of Accelerated Industrial and Innovative Development of the Republic of Kazakhstan (SPAIID). DBK is a part of Baiterek National Managing Holding JSC.