The Standard & Poor’s ratings service has reportedly created a new index that measures the relative vulnerability of emerging European countries to disruptions in capital inflows, Emerging Europe Sensitivity Index or EESI. Kazakhstan’s economy will continue to grow even in case of deterioration in global trade, according to the Standard & Poor’s rating agency, KazTAG reported. The report entitled «S&P’s Sensitivity Index Measures Emerging Europe’s Vulnerability to Eurozone Shocks» covers 19 countries outside the euro area, including the CIS countries, such as Kazakhstan, Russia, Belarus, Azerbaijan, and Ukraine. According to S&P, Turkey is «the most vulnerable to sudden financial account outflows and external refinancing risks». At the other end of the scale are Russia, Kazakhstan, and Azerbaijan and it was noted that although these countries are heavily dependent on commodity prices, «their track record of operating repeated annual current account surpluses, amid high foreign exchange reserves and relatively low foreign currency lending, supports their low-vulnerability EESI scores». Apart from that, requirements of banks to residents are funded primarily from in-country sources in these countries. However, the report says, Kazakhstan’s index has improved significantly since 2009, thanks, above all, to a substantial reduction in external debt of the banking sector as a result of large-scale debt restructuring in 2009 and 2010.

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