BAKU, Azerbaijan, March 5
By Nargiz Sadikhova – Trend:
As of 2020, the National Bank of Kazakhstan adopted some measures worth 2.3 trillion tenge ($5.5 billion) during the coronavirus pandemic as part of the anti-crisis measures, the National Bank told Trend on March 5.
Thus, funding for the Economy of Simple Things Program was increased by 400 billion tenge ($959.1 million) in 2020, thereby bringing the total amount to one trillion tenge ($2.3 billion).
The program is aimed at expanding production in the manufacturing industry and the agro-industrial complex, saturating the domestic market with the goods and services of domestic producers.
At the same time, the National Bank supported the package of amendments to the Program adopted by the Kazakh government on October 1, 2020, envisaging the expansion of the program conditions, including the extension of the validity period until late 2021.
Financing of the program is envisaged through the purchase of bonds of second-tier banks and the Agrarian Credit Corporation JSC in the amount of up to one trillion tenge ($2.3 billion) with a maturity of up to 10 years at a final rate of return of up to 11 percent per annum through the National Bank's own funds and funds held in its management.
To support business activity and employment of the population, as well as for the purposes of regional development, the National Bank financed the Employment Roadmap for 2020-2021 worth 700 billion tenge ($1.6 million) through the provision of bond loans to Baiterek National Management Holding JSC.
To support small and medium-sized enterprises during the period of the introduction of the state of emergency, the National Bank, together with the Agency for Regulation and Development of the Financial Market, adopted a Program of Concessional Lending to Small and Medium-Sized Enterprises.
The business support mechanism is implemented through the issuance of preferential loans by second-tier banks to replenish working capital to small and medium-sized enterprises, individual entrepreneurs affected as a result of a state of emergency, up to 12 months at a rate of no more than eight percent per annum.
A decision was made to increase the amount of funding for this Program by 200 billion tenge ($479.5 million) to 800 billion tenge ($1.9 billion) in 2020. The extension of the validity period until the end of 2021 and the inclusion of big enterprises in the most affected sectors of the economy are envisaged.
Thus, the National Bank allocated funds through the placement of deposits in 12 second-tier banks for the implementation of the Program.
The National Bank intends to allocate 390 billion tenge ($935.2 million) upon the housing lending project "5-10-20" to provide affordable credit housing and to finance construction upon the "Nurly Zher" state program, of which 270 billion tenge ($647.4 million) were allocated during 2020.
"The above-mentioned anti-crisis measures of state support for the economy stimulated bank lending to the economy, which in turn rendered support to the banking sector," the National Bank said.