Middle East & Central Asia News
LAST UPDATE: May 29, 2025
Kazakhstan Weighs $2.5 Billion Foreign Bond to Cover Budget Gap
Kazakhstan is considering issuing $2.5 billion in foreign bonds to address a budget shortfall, marking its first significant international debt offering since 2014.
Insight
The potential bond issuance indicates Kazakhstan’s need to finance its budget amid fiscal pressures, possibly due to fluctuating oil revenues and economic challenges. Accessing international capital markets could provide necessary funds but may also increase external debt and exposure to global financial conditions. The move underscores the country’s efforts to balance domestic fiscal needs with maintaining investor confidence.
Kazakhstan Says It Can’t Cut Oil Output Despite OPEC+ Deal
Kazakhstan announced it cannot reduce oil production as agreed in the OPEC+ deal, citing technical and contractual constraints, and hopes to increase output later this year.
Insight
Kazakhstan’s inability to comply with OPEC+ production cuts highlights the challenges member countries face in balancing international commitments with domestic economic interests. The country’s reliance on oil revenues makes production cuts economically difficult, potentially straining relations within OPEC+. This situation may affect global oil supply dynamics and the effectiveness of OPEC+’s strategies to stabilize oil markets.
