ANVAR SAIDENOV Governor of the National Bank of Kazakhstan

"A very good relationship with London"

Anvar Saidenov, governor of Kazakhstan’s central bank, regards his country as a “land of opportunities.” In addition to directing the nation’s main institution for maintaining currency stability, he sees his role as creating a muscular micro-economic and
investment climate.

What have been the key factors behind Kazakhstan’s remarkable economic growth over the past 15 years, beside the oil and gas sector?

The internal factors for this success are the economic reforms undertaken in the early and mid-90s when we looked at privatising and reforming the finance and banking sectors. Some of the institutional and structural changes were quite painful – for example the reform of the financial system.

What was President Nazarbayev’s role in this growth?

The president’s role and personal stand were important for the changes in the finance and banking sector as there was strong resistance from parliament. The president himself intervened personally to push these reforms.

How important was the decision to diversify the economy?

This started in the 90s with the privatisation program, when major players came to our country – foreign players with foreign business activities and foreign standards of corporate governance. Right now the government is focused on diversification.

What are the key areas of financial cooperation between Kazakhstan and Great Britain?

Links are growing among private financial institutions and regulatory agencies. On the regulatory side, the national bank has very good relations with the Financial Services Authority (FSA) as well as with the Bank of England.

What makes the London Stock Exchange so attractive to top Kazakhstani companies?

There are several reasons. Firstly, London is one of the world top financial centres and is close to Kazakhstan. Secondly, we decided to use ISSI standards for regulating the financial sector. For this reason, the UK, and London in particular, was selected as a major partner. Finally, if we look at the particular requirements of the LSE, they best suited our own requirements.

What are the most promising areas in the finance sector?

Consumer lending has great potential because of the public’s growing income. The business is booming and is subject to increasing competition between the local and foreign banks. Asset management is another interesting area. People now have money they would like to invest and often choose mutual funds, as interest rates are higher than regular saving accounts.