GSM Kazakhstan O.A.O.

MIGA issued an $8 million guarantee to Bank Kreiss AG of Germany and a $6.3 million guarantee to Banque de Commerce et Placements S.A. of Switzerland for their respective loans to a digital cellular telecommunications network in Kazakhstan. The loans are insured against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project consists of the operation of a state-of-the-art cellular network in Kazakhstan according to the GSM (Global System for Mobile telecommunications) standard, in which Turkcell, a major Turkish telecommunications operator, will have a majority share. GSM Kazakhstan expects its number of subscribers to increase from currently 15,000 to more than a million by the year 2008. The company is expected to employ 83 local staff by the year 2000 who will receive technical, general GSM, and marketing training.