KazAgro increases financing of agribusiness by 50%

Business Materials 23 April 2019 17:26 (UTC +04:00)

Baku, Azerbaijan, April 23


Kazakhstan's KazAgro National Management Holding allocated funds worth 400 billion tenge to finance agribusiness in the country, Trend reports with reference to Kazakhstan's Ministry of Agriculture.

Reportedly, this unprecedented amount is 50 percent (266,7 billion tenge) more than in 2017. "Around 96 percent (385 billion tenge) of this amount accounts for loans and leasing (with 90 percent accounting for long-term loans).

"The task of ensuring the improved access of agribusinesses to funding is very relevant, which is addressed by KazAgro National Management Holding’s programs, as well as funding by second tier banks, credit associations, microcredit organizations and leasing companies," reads the message.

“There were about 20,000 loans lent, more than 11,000 new job opportunities provided and more than 56,000 people employed," said Juvashev Assylkhan, managing director for assets and investments.

Against the background of decreasing interest by banks in agribusiness funding, KazAgro actively increases access to financial services with a help of private finance companies, that's to say, credit associations, microcredit organizations, second tier banks and leasing companies, reads the message.

Reportedly, lending through their funding reached 132 billion tenge (48 percent more than in the same period last year) that is more than 34 percent of Holding’s total credit to agro-based industry.

"Today there is a growing demand for funds provided by KazAgro," said the ministry.

KazAgro works on implementing the state policy on Kazakhstan’s agribusiness development by providing effective management of companies’ investment assets. Holding includes such companies as Agrarian Credit Corporation JSC, Kazagrofinance JSC, Kazagroynim JSC, Fund of Financial Support of Agriculture JSC, Kazagromarketing JSC, Kazagrogarant JSC and Food Contract Corporation National Company.