Lending to entrepreneurs working in transport up in Kazakhstan
BAKU, Azerbaijan, Oct. 31
By Nargiz Sadikhova - Trend:
Value of funding of small entrepreneurship businesses in transport sector of Kazakhstan was 134.9 billion tenge ($349 million) as of October 1, 2019, which is 0.9 percent more than during the previous month, Trend reports with reference to Kazakhstan’s National Bank.
The value of total lending to legal persons in the transport sector was 116.7 billion tenge during the reporting period (approximately $301.9 million, increase of 0.1 percent). For the most part, legal persons preferred long term loans denominated in tenge during the reporting period (61.2 billion tenge or $158.3 million, increase of 2.5 percent).
Value of foreign currency denominated long term lending to legal entities was 43.1 billion tenge or $114.4 million, which is 0.2 percent less than during the reporting period.
Furthermore, value of lending to physical entities working in transport was 18.2 billion tenge or $47 million, which is 0.2 percent more than during last month.
According to the information, physical entities also preferred long term loans denominated in tenge (17.5 billion tenge or $45.4 million, decrease of 0.2 percent).
Furthermore, value of foreign currency denominated lending to physical persons was 230 million tenge ($594,603, growth by 7.4 percent), whereas tenge denominated short term lending to physical persons was 345 million tenge ($891,905, growth of 5.8 percent).
A significant increase of value is observed in foreign currency denominated short term lending to physical persons. Thus, it amounted to 55 million tenge ($142,187), which is 77.4 percent more than last month.
Entrepreneurship development is one of the main targets Kazakhstan’s government. With this in mind, Damu Entrepreneurship Development Fund JSC has been established. Furthermore, previously this year, President of Kazakhstan Kassym-Jomart Tokayev has mandated to temporarily exempt local ventures of micro and small business from paying taxes related to main activities for three years.
Over the past 10 years, $30 billion worth of investments have been put in the development of the country’s transport industry. As a result, over 2,000 km of railways were built, reconstruction of 15 airports was implemented, 19,500 km of roads was reconstructed. Furthermore, 11 international transport corridors pass through the territory of Kazakhstan, five of which are railway corridors and six are automobile corridors.
Follow the author on twitter: @nargiz_sadikh