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Eurasian Development Bank to finance agricultural machinery and equipment supplies to Kazakhstan

Business Materials 27 December 2013 16:11 (UTC +04:00)

Baku, Azerbaijan, Dec. 27
By Elena Kosolapova - Trend: Eurasian Development Bank opened a $10 million targeted loan facility for Kazakhstan's Kazagrofinance, the bank reported.

The parties signed an agreement on this issue on Dec. 26.

The funds will be used to finance supplies of agricultural machinery and equipment to Kazakhstan. At least 60 percent of the loan will be used to cover supplies from EDB member states. The facility will be available for up to five years in the form of direct finance and/or guarantees from EDB.

The project is in line with EDB's mission and strategy as it promotes sustainable economic growth in Kazakhstan by helping to upgrade its fleet of agricultural equipment and advance its agro-industrial sector. In addition, it will contribute to an increase in trade between the EDB member states.

In March 2013, EDB opened a $20 million loan facility for Kazagrofinance to finance agricultural machinery supplies to Kazakhstan and in July 2012 it provided a $10 million guarantee for five years to secure Kazagrofinance's obligations before Deere Credit Inc., under a loan provided to purchase agricultural equipment from this company in order to lease it out to Kazakhstan's agro-industrial enterprises.

Kazagrofinance focuses on development of the country's agrarian sector by providing agricultural producers with access to finance and agricultural equipment on lease terms.

Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission of facilitating the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB's charter capital exceeds $1.5 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

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