Kazakhstan reveals state-backed funding measures for SMEs
BAKU, Azerbaijan, May 25
By Nargiz Sadikhova - Trend:
Kazakhstan’s small and medium business entities (SMEs) received nearly 160 billion tenge ($386 million) worth of soft loans as of May 25 within the framework of SMEs support program, 2020, Trend reports with reference to Kazakhstan Sustainability Fund.
The fund said that implementation of the soft loans allocation program to support SME continues in Kazakhstan, which offers loans for up to 12 months at a rate of no more than 8 percent per annum.
Currently, banks allocated loans to 1,116 SMEs in the amount of about 160 billion tenge ($386 million). Most of the recipients account for representatives of wholesale and retail trade.
The program of preferential lending was initiated by Kazakhstan’s President Kassym-Jomart Tokaev due to the coronavirus pandemic and its negative impact on the economy of Kazakhstan.
In order to support country’s SMEs, individual entrepreneurs affected by the emergency state in the country, the Kazakhstan’s National Bank allocated 600 billion tenge ($1.4 billion).
The program is implemented by the Kazakhstan Sustainability Fund in cooperation with Kazakhstan’s Agency for Regulation and Development of the Financial Market and 12 banks of the country.
On March 15, 2020, Kazakhstan’s president signed a decree introducing an emergency state in Kazakhstan due to the coronavirus outbreak, which came in force on March 16 and was to last till April 15, 2020.
Later, by a decree of Kazakhstan's president, the emergency state period in Kazakhstan was extended till May 1, 2020, and then till May 11, 2020.
Since May 11, 2020 quarantine regime was eased in some and extended in other Kazakh regions and cities based on epidemiological situation in each of them.
The first two cases of coronavirus infection were detected in Kazakhstan among those who arrived in Almaty city from Germany on March 13, 2020.
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