Today, Kazakhstan’s government announced its approval of a stabilization plan to inject approximately $10 billion, or 20% of the nation’s annual GDP, into the national economy. The stabilization plan intensifies efforts already undertaken by Kazakhstan’s government to support the oil-rich economy, including injecting capital into its largest private banking institutions.

According to Kazakhstan Prime Minister Karim Massimov, “the plan of concerted efforts to be taken by the Government, the National Bank and the Agency for Financial Supervision (financial market regulator) is very specific and relies on available resources,” and “to implement the plan, USD 10 billion will be allocated out of the National [Oil] Fund, out of the 2009-2010 state budget funds, as well as out of pension accumulation funds.” Under the stabilization plan, $4 billion has been earmarked to stabilize the financial sector, $3 billion has been earmarked to revitalize the real estate market, and $1 billion each has been allocated to support the small and medium business, agriculture and industrial sectors of the economy.

Kazakhstan’s Ministry of Economy and Budget Planning has been commissioned by Prime Minister Massimov to set forth detailed guidelines for the plan’s implementation within the next two weeks.