Will Kazakhstan residents receive compensation for their deposits again?

The head of the National Bank of Kazakhstan, Timur Suleimenov, responded to a question regarding the possibility of a repeat compensation payment for deposits similar to those implemented in March 2023, as reported by IA "NewTimes.kz".

Suleimenov explained that the current economic situation and the conditions in the deposit market do not necessitate the introduction of such programs.

Suleimenov reminded that the deposit compensation program in 2023 was prompted by sharp changes in the geopolitical and economic landscape, referring to the war in Ukraine that began in 2022.

“First – at that time, the geopolitical circumstances were completely different. As you remember, during that period, the exchange rate surged dramatically, from about 400 to 530 tenge. So, there was a completely different backdrop. Second – at that moment, the interest rates on tenge deposits were around 8-9%. So, having 8-9% on deposits or 15% is a different matter. Back then, both the government and the National Bank decided that to prevent people from exiting tenge and buying dollars, it was necessary to retain them and provide this state incentive. Currently, we believe that the level of deposit rates is sufficiently high. And, honestly, even on a personal level, I think that keeping money in tenge deposits is probably easier than in dollars. Therefore, such a program is not planned,” – said the head of the financial regulator.

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Moreover, Suleimenov added that such measures require significant fiscal expenditures, and the financial resources of the state are currently limited.