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
The total amount of financing is 1 billion 26 million 760 thousand dollars.
During the discussion, Deputy Aisarakan Abdibaeva raised the question of why the grant portion of the financing is so small compared to the total amount. In her opinion, grants could amount to at least 200–300 million dollars. She also requested clarification regarding the lack of detailed analysis on projects, conditions, and specific directions, including support for small and medium-sized businesses, social initiatives, 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 (B+ with a stable outlook).
According to him, grants are gradually being reduced, while concessional loans are becoming the main financing tool. The framework agreement serves as a "package" backup mechanism that allows for maintaining access to concessional funds and preventing their redistribution to other countries. Specific projects, their names, conditions, and design will be developed separately, and complete information will be available later when the technical and economic justifications are ready. All projects will be coordinated with deputies and relevant committees.
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