Kazakhstan Fund increases lending to agriculture sector
Baku, Azerbaijan, Nov. 23
By Nigar Guliyeva – Trend:
The Fund for Financial Support of Agriculture JSC will continue financing cooperatives, agricultural producers and rural residents in 2018.
Chairman of the Board of Fund Zhandar Omarov announced about this speaking at a briefing Nov.23. He added that it is planned to issue loans worth over 45 billion tenge.
Omarov noted that the Fund, being a structural subdivision of the "KazAgro" Holding, is one of the largest operators in the rural microcredit market.
"Today, the average loan amount is about 4 million tenge, the loan term is up to 7 years, the effective interest rate is up to 6.7 percent per year, there is a preferential period up to 2 years., "Omarov said.
He added that this year, with the participation of the Foundation, 528 cooperatives were created, which combined 18,500 personal farms. Some 25 billion tenge was allocated to finance cooperatives and their participants.
During the 10 months of this year, the Fund issued 12,000 loans for a total of 45 billion tenge, including 16.4 billion - under the Program of Productive Employment, 22.4 billion - budgetary funds, 6.2 billion - own and raised funds from local budgets .
The growth in financing amounted to 10 billion tenge compared to the same period of 2016.
Omarov noted that today, for the first time in the history of the Fund's activities, the company's loan portfolio has crossed the threshold of 100 billion tenge and reached 104 billion.
The number of active borrowers exceeded 44,000 borrowers. Thus, over the past five years, the volume of the loan portfolio has grown almost 5 times, the number of active borrowers - 3 times, the annual volume of financing has increased 4-fold.
The Fund for Financial Support of Agriculture JSC is a specialized financial and credit organization that is part of the KazAgro Holding. The main objective of the Foundation is to increase the access of the rural population to financial services and resources.
The official exchange rate for November 11 is 330.22 KZT / USD.