Baku, Azerbaijan, Oct. 5
By Elena Kosolapova - Trend:
This year the farms and agro-industrial entities in Kazakhstan have received a funding of 92.8 billion tenges (271.05 tenges = $1) from the country's national holding KazAgro.
The holding said in a message Oct. 5 that the main part of these funds accounts for a loan of 60 billion tenges allocated to the holding from the republican budget for activities to support the agro-industry subjects.
The budgetary credit is distributed by KazAgro as loans among its subsidiaries (Food Contract Corporation NC, Agrarian Credit Corporation JSC), and the second-tier banks.
The funds were used for subsequent lending to the entities of the agro-industrial complex, as well as to replenish working capital in order to carry out spring sowing and harvesting and for subsequent financing of agricultural producers by purchasing agricultural products, according to KazAgro.
Additionally, these funds were used for lending to credit societies for subsequent financing of agricultural producers, said the holding.
To date, the volume of used funds has neared 59 billion tenge, or around 98 percent of the planned volume, said the message.
The agribusiness funding through the second level banks as in 2014 was used in Kazakhstan to expand the farmers' funding opportunities. The number of banks participating in the program has increased twofold from 4 to 8 compared to 2014. The total funding amount for them is 33.5 billion tenge. To date, some 100 percent of the funds have been used.
Besides the budget loan, the subsidiaries of the KazAgro holding financed the spring-field and harvest work at their own expense.
For example, among them are "Fund of Financial Support for Agriculture" JSC - via "Eginzhai" program, "Agrarian Credit Corporation" JSC - via the credit association system, "KazAgroFinance" JSC - via an agricultural machinery leasing program.
The program of preferential acquisition of combines of domestic production has been introduced through the line of KazAgroFinance JSC in order to help farmers to timely conduct the harvesting campaign. Terms of the program provide for a period of seven years with deferred payment in the amount of 10 percent till November 15, 2015. Similar conditions are provided for leasing of winnowing and grain drying equipment.
Since the beginning of the year, contracts for the purchase of 3,452 units of agricultural and machinery equipment in the amount of 42.6 billion tenge, including 303 combine harvesters, 1,148 tractors, 1,279 units of special equipment, 60 pieces of technological equipment, two units of processing equipment, 660 units of other equipment have been concluded in Kazakhstan.
Edited by CN
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