BAKU, Azerbaijan, Nov. 20
Trend:
The National Bank of Kazakhstan made amendments to the concessional lending program for business entities, Trend reports referring to Kazinform.
"In order to implement the instructions of the President Kassym-Jomart Tokayev, the bank, by a decision of October 27, 2020, allocated additional 200 billion tenge ($470 million) for lending to large businesses and entrepreneurs in the agricultural sector, affected by the (COVID-19 pandemic-related) state of emergency, within the program,” said the bank’s press service.
Moreover, the bank extended the program’s term until December 31, 2021, and the term for the allocation’s disbursement - up to March 31, 2021.
For the aim to apply the adopted amendments of the National Bank and expand the program’s coverage, the Kazakh Ministry of National Economy, together with the Atameken National Chamber of Entrepreneurs, carried out work to identify the most affected industries as a result of the state of emergency.
A list of the affected activities in the manufacturing and service industries, submitted by the ministry for approval to the bank was determined and approved through a joint order of the bank’s chairman and the minister on November 18, 2020.
The large enterprises affected by the introduction of the state of emergency and operating in the economy’s affected sectors shown in the above list can apply to second-tier banks for obtaining concessional loans. At the same time, a limit of up to 6 billion tenge ($14 million) is set for one borrower - a large business enterprise. The limit for small and medium-sized business enterprises has been preserved in the amount of no more than 3 billion tenge ($7 million), for individuals - no more than 50 million tenge ($116,700).
Of the additional 200 billion tenge allocated for concessional lending to the agro-industrial complex, a limit of 100 billion tenge ($233.4 million) has been determined, of which 70 billion tenge ($163.4 million) will be allocated through second-tier banks and 30 billion tenge ($70 million) – via Agrarian Credit Corporation JSC.
It should be noted that due to the expansion of the coverage of the program participants, its name was changed to the program of concessional lending to business entities.
The program was adopted in March this year through the instruction of the country’s president and is aimed at supporting entrepreneurs affected by the introduction of the state of emergency.
As of November 18 of this year, the second-tier banks have accepted 2,311 applications for the amount of 567.4 billion tenge ($132.4 million). Some 1,370 small and medium-sized enterprises (1,168 SMEs and 202 individuals) were issued loans worth 455.3 billion tenge (106.2 million), of which 101.6 billion tenge ($237.2 million) were received from the repayment of previously given loans.
Most of the allocated funds fall on small and medium-sized businesses enterprises in trade - 319 billion tenge or $744.6 million (70 percent), construction - 44.9 billion tenge or $10.4 million (9.9 percent), and processing industry - 39.8 billion tenge or $92.9 million (8.7 percent).
(1USD = 428.3892 KZT on Nov.20)