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SMEs support amid COVID-19 program extended in Kazakhstan

Business Materials 3 September 2020 17:46
SMEs support amid COVID-19 program extended in Kazakhstan

BAKU, Azerbaijan, Sept. 3

By Nargiz Sadikhova - Trend:

Kazakhstan’s Concessional lending program to support SMEs will be extended till the end of 2021, Deputy Governor of Kazakhstan’s National Bank Yeszhan Birtanov said, Trend reports with reference to the National Bank.

The program will be extended as a response to the order of Kazakhstan’s President, Kassym Jomart Tokayev given during his address to the people on Sept. 1, 2020.

The program is currently being implemented within the framework of the anti-crisis measures since March 2020. The program of concessional lending is being implemented to support SMEs, and its total funding capital is 600 billion tenges ($1.4 billion).

The program is aimed at supporting SMEs affected by the introduction of a state of emergency. To confirm the deterioration of the financial condition, the borrower provides the bank with the relevant documents.

Under the program, loans are provided to enterprises to replenish working capital at an interest rate of up to 8 percent per annum. During the period of the Program, 2,207 applications were accepted for the amount of 536 billion tenges ($1.2 billion), including 1,279 small and medium-sized businesses that already received support in the amount of 341.4 billion tenges ($815.4 million).

Thus, under Tokayev’s order, the program’s activities will be extended till the end of 2021 (was supposed to end by the end of 2020). The program's funding will also be increased to 800 billion tenges ($1.9 billion).

At the same time, the support will only be offered to SMEs operating in priority sectors identified by the Government in cooperation with the Atameken National Chamber of Entrepreneurship.

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