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№16 (152) 24 August - 6 September 2005

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Cool Borzhomi ice Borzhomi
This summer Georgian people had a chance to enjoy stories about love affairs of the new leader of the nation Mikheil Saakashvilli (Misha seemed to live a life of the real playboy). Rumors swirled that numerous romances of the president made his wife nervous and precipitated her return from Holland. But the recent meeting of Georgian and Ukrainian leaders(summit was held in Borzhomi) again attracted public attention to the problems of big politics. Two presidents of "сolorored" states agreed to form the union called Baltic and Black Sea Commonwealth of democracies.
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The Federal Reserve raised its rate by a quarter of a percentage point, up to 3.5 percent. Is this news good for Kazakhstani banks? Where are the national banks going to take cheap loans? Sufficient assets are necessary for the credit allocation. Kazakhstani economy is thriving but the banks may fail to satisfy the needs of the markets and sustain the crediting boom. Demand for credits remains high. At the same time the return rates of banks are quite low due to the intense rivalry in this economic sector.

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