Astana, Kazakhstan, April 22
By Daniyar Mukhtarov - Trend:
Kazakhstan plans to approve the rules on investment funding of agro-industrial complex projects until May 1, 2014.
"It is planned that until May 1, the government would adopt the rules on investment funding. This is a new kind of mechanism, that was not applied before, but it's very much needed," Kazakh Minister of Agriculture Asylzhan Mamytbekov said at a briefing held at the Central Communication Service under the President of Kazakhstan.
Mamytbekov said that the essence of the mechanism is to reimburse part of the entrepreneurs' expenses, which occurred as a result of investment projects.
"Thus, a portion of investments made through borrowing or from own resources will be returned to the investor from the budget," he explained. "This would allow to reduce costs and improve product competitiveness, reduce the payback period and increase the profitability of agricultural production.
Mamytbekov noted that the rules of funding costs on financial recovery of agriculture complex facilities were approved by the Kazakh government on April 14.
"It is planned that in the first half of the year, the funding of banks will be made in the amount of 140 billion tenge [182,07 tenge = $ 1] for further financial recovery of agriculture facilities. This money is attracted in the stock market, from the outside. Only the interest rate is funded from the budget," he said.
Mamytbekov said that one of the key directions of agro-industrial complex development in Kazakhstan is support of the projects in the sphere of processing of agricultural production.
The result of this support should be the reduction of import volume of agricultural products processing in Kazakhstan, according to the minister.
"For example, we plan to reduce the share of imports from the existing 33 percent to 10 percent by 2020 on the dairy market in Kazakhstan. The decrease in imports for a number of indicators will help stabilize our domestic market and increase production volume," Mamytbekov said.
Translated by S.I.
Edited by S.I.
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