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Capital markets: Outlook starts to worsen

By David Oakley, Capital Markets Correspondent

Published: July 1 2008 00:13 | Last updated: July 1 2008 00:13

In April, Kazakhstan’s long-term credit outlook was lowered from stable to negative, as concerns about the country’s financial sector rose amid fears that the banks would struggle to service the mountain of debt taken on before the credit crisis.

A week later, Standard and Poor’s, the ratings agency, also warned that the Kazakh banking system had reached a decisive juncture because of problems in servicing this debt, with $14.8bn maturing this year.

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