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Kazakhstan’s agri-industrial complex needs additional financing

Business Materials 14 February 2018 21:07 (UTC +04:00)

Baku, Azerbaijan, Feb. 14

By Ali Mustafayev – Trend:

The agri-industrial complex of Kazakhstan needs additional financing, as well as an increase in issuance of loans by local banks, said Deputy Minister of Agriculture of Kazakhstan Umirzak Shukeyev at a meeting of the board of the ministry.

In this regard, Shukeyev proposed to implement a new guarantee system in agriculture sector.

"We need to implement a new insurance system, to create necessary conditions that will allow banks, to allocate funds for the agricultural companies, avoiding big risks. It is a very important target," Shukeyev said.

He added that presently the agro-industrial complex "suffocates" because of a lack of financing.

"We need to make changes in the state program, to increase the money flow in order to support the agri-industrial complex," he said.

The deputy minister of agriculture added that the current program for support and development of the agro-industrial complex of Kazakhstan provides for a trillion tenge, the previous program envisaged 1.4 trillion tenge.

Shukeyev also stressed that the banks significantly reduced the volume of lending to agricultural enterprises, which is also a significant roadblock for the development of the sector.

(Exchange rate for 14.02.2018: $1 – 324 tenge)

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