Kazakh net FDI inflow up in 2007 - cbank

ALMATY, March 27 (Reuters) - The net inflow of foreign direct investment (FDI) into Kazakhstan increased in 2007, central bank Deputy Chairman Daniyar Akishev said on Thursday.

Keeping a healthy flow of FDI and a large trade surplus is crucial for Kazakhstan which has been hit by the global liquidity squeeze.

The authorities hope these items will fill the gap created by the need to repay $12 billion in banks' external debt this year. Kazakh banks have said they would not refinance any of these loans as rates required by the market are too high.

"According to preliminary data, the net inflow of foreign direct investment in 2007 was $7 billion," Akishev told an investment conference. Net FDI inflow was $6.6 billion in 2006.

Kazakhstan expects its gross domestic product growth to slow to 5-7 percent this year from last year's 8.5 percent as the credit crunch triggered by the liquidity woes affects the wider economy.

But the central bank has said that decreasing imports and strong FDI would ease pressure on the tenge currency which suffered from a sell-off in the first months after the squeeze. (Writing by Olzhas Auyezov; editing by David Stamp)