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Kazakhstan to establish special fund to support processing industry

Business Materials 19 May 2020 16:58 (UTC +04:00)
Kazakhstan to establish special fund to support processing industry

BAKU, Azerbaijan, May 19

By Nargiz Sadikhova - Trend:

Kazakhstan will take processing industry support measures, Kazakhstan’s Minister of National Economy Ruslan Dalenov said, Trend reports with reference to the press office of Kazakhstan’s prime minister.

Thus, Dalenov said that industry financing mechanisms are being expanded. Now, processing enterprises, regardless of size, will receive preferential financing of working capital under the corresponding program of National Bank.

Long-term agreements will be accepted by national development institutions as a ‘firm guarantee’.

Dalenov added that manufacturing entities will be able to receive soft loans under the Business Roadmap 2025 state program. Export crediting will also be provided.

“In order to provide banks with a joint loan for one borrower, syndicated lending will be introduced. In addition, an Industry Development Fund will be created. Processing facilities will be receiving credits through the Fund at a rate of no more than 3 percent,” Dalenov said.

The government also supported a number of measures to promote goods of local producers. This includes off-take contracts in public procurement, procurement of the quasi-public sector and subsoil users, obligations on the use of Kazakh materials and equipment for recipients of preferential financing.

“These obligations will be established in licensed contractual terms to private investors. The mechanism for providing investment subsidies for the acquisition of agricultural machinery will be improved. In addition, reimbursement of transport costs of manufacturers of high value added export products will be increased to 80 percent. Working capital replenishment will be facilitated by an accelerated VAT refund,” Dalenov said.

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