GSM Kazakhstan OAO Kazakhtelecom LLP

MIGA issued further guarantees totaling $23.5 million for equity investments and two shareholder loans provided to GSM Kazakhstan by Fintur Holdings B.V. of the Netherlands and Pamukbank TAS of Turkey. MIGA's gross exposure under the project, including the guarantees issued in 1999, is $32 million. The project entails the expansion of existing digital cellular technology in Kazakhstan and extension of services into previously underserved areas.

The project will contribute to the development of modern telecommunication services in Kazakhstan using the GSM (Global System for Mobile telecommunication) network. The expansion also includes the integration of Internet and satellite and data transmission services. MIGA will support an increasingly important and growing sector in the Kazakhstani economy, while consumers will benefit from the availability of high-quality telecommunication services. The Kazakhstani GSM subscriber base is expected to increase to 460,000 by year-end 2001, from 141,000 at the end of 2000.