Kazakh banks reduce funding of agricultural sector by almost 4 times

Business Materials 18 April 2019 15:25 (UTC +04:00)

Baku, Azerbaijan, Apr. 18

By Fakhri Vakilov – Trend:

Kazakh Banks have reduced agricultural lending by almost 4 times from 448 billion tenge to 112 billion tenge, Trend reports via Kazakh media.

“The Ministry of Agriculture is facing specific tasks to increase labor productivity in the agro-industrial complex and export processed agricultural products by 2.5 times. However, banks reduce lending to agriculture for various reasons. Thus, in recent years it has been reduced from 448 billion tenge to 112 billion tenge, or almost 4 times. At the same time, subsidiaries of KazAgro multiply increased the volume of lending,” Vice-Minister of Agriculture of Kazakhstan, Rustem Karmanov said in the Parliament.

Deputy Chairman of the Parliament Vladimir Bozhko said that Kazakhstan has the lowest funding in the Customs Union.

The Vice Speaker said that when considering the issue of financing, Nurlan Nigmatulin (the speaker of Parliament) strongly criticized the Ministry of Economy and the Ministry of Finance for lacking of control over the provision and allocation of funds by regional administrations to subsidize agricultural producers.

He stated that the share of agriculture in GDP is still 4.5 percent, although Russia finances agriculture by 10 percent, Belarus is officially 18 percent.

($1-379.80 tenge on Apr. 18)


Follow author on Twitter:@vakilovfaxri