Text 6.

Retell the text.

Put special questions to the text.

Make up sentences with the following word combinations.

Give the Definitions.

Complete the sentences.

Match the following word combinations.

1) Companies can have a variety of …2) Preference shares have a fixed…3)Ordinary shares entitle their owners…4) Companies may also turn part of their profit of capital by…5) The composition of a company's capital is called…

Preference shares, ordinary shares, capital structure.

General meetings, a long-term debt, new shares, distributed profits distributed profits.

Kazakhstan: Development of banking sector.

Kazakhstan has made a great progress in developing country's financial sector during the years of independence. After gaining its independence in 1991,the country formed up a two-level banking system: all the specialized banks were transformed into the join-stock banks, the National Bank obtained a number of functions of a central bank.

Currently, 44 banks of second level provide financing of the economy using the people's savings, business entities' available funds, and the National Bank carries out the monetary and credit policy and regulates the country's banking system.

Aggregate equity capital of the banks totaled 120 billion tenge at the end of 2001. The banks of Kazakhstan have an extensive network all over the country and outside it. The country's banking system is open for foreign capital: practically one third of the Kazakhstani banks have a foreign portion. Moreover, 14 representative offices of the foreign banks operate in Kazakhstan.

There is a proper legislative basis contributing to forming and developing the financial institutions. During the years of independent development, Kazakhstan passed several Laws: "On the National Bank of the Republic of Kazakhstan", "On the banks and banking operations in the RK", "On equity market", Tax Code "On the budget system", etc.

Reform in the banking system mitigated transition to the own national currency in November 1993 and implementation of the independent monetary and credit policy by Kazakhstan. As a result of anti-inflation policy in 1993-1996, the macroeconomic situation was stabilized; inflation rate and budget deficit notably went down. In 2001, the inflation rate came to 6.4% only (the lowest rate for 10 years).

Law inflation rate had a positive impact on increase in the credits allocated for the economic needs. Nowadays, the refunding rate in Kazakhstan is 9%, which is one the lowest rates in the CIS.

As compared to industrial positive growth in many economic sectors, stable development of the financial market and progressive growth of the banks' resources, the credit potential of the banks went high.

As a result, the banks have more intensive operations in crediting the subjects of economic real sector. Presently, over 60% of the banking assets are allocated for crediting economy.

In April 1999, a free exchanged rate of national currency was introduced. In order to protect the people's savings from devaluation, the banks of Kazakhstan have converted the tenge accounts, thus the people began showing more confidence in the banks.

The confidence growth was also stipulated by formation of the Fund for compulsory insurance of the deposits. As a result, the number of people's deposits has notably increased: they totaled 170 billion tenge by the late of 2001.

Moreover, the Kazakhstani Fund of underwriting of the physical bodies' accounts in the second-level banks. Currently, 20 banks are the participants of the system of collective underwriting of the physical bodies' deposit accounts. Increased attraction of the people's savings by the banks resulted in increase of the banking operations, improvement of their competitiveness, reduction of the prime costs of the banking services and their availability for the banking clients.

Nowadays, the Kazakhstani banking sector is considered the most financially stable and harmonically developing one in the CIS. Meanwhile, the number of banking indicators is increasing, the number and quality of the banking services are also improving, thus meeting the international standards of the banking operations makes it possible to maintain financial stability of the banking sector.

1. Find Russian equivalents for the following words:

Financial, independence, join-stock, two-level, obtain, savings, available, equity, billion, extensive, network, foreign, portion, regulate, legislative, basis, representative, proper, operation, portion, code, contribute, budget, transition, rate, growth, currency, free, positive, impact, increase, , stable, development, progressive, resource, accounts,

underwriting, attraction, improvement, competitiveness, reduction, prime, cost, client.