BAKU, Azerbaijan, Sept.1
Kazakhstan continues implementing a mechanism for guaranteeing loans from second-tier banks, allocated for implementation of investment projects in agricultural sector, which was launched on August 2020, Trend reports referring to the country’s Agricultural Ministry.
According to the ministry, eight enterprises from Akmola, West Kazakhstan, Kostanay and Pavlodar regions received guarantees for a bank loan with the guarantee’s total amount of 2.3 billion tenge ($5.4 million). Due to the guarantees, the farmers were able to obtain loans in second-tier banks and renew their fixed assets.
Currently, the banks are considering five more projects for a total guarantee amount of 3.8 billion tenge ($8.9 million). In case of a positive decision, the guarantees will be received by entrepreneurs of Aktobe, East Kazakhstan, Zhambyl, Kostanay, and North Kazakhstan regions. Projects for the construction of a year-round greenhouse and grain drying complexes, frame hangars, purchase of sprinkler equipment and replenishment of working capital are presented.
The mechanism for guaranteeing bank loans was developed by the Ministry of Agriculture with the aim of supporting farmers by stimulating lending to agriculture, sharing credit risks of banks and increasing the attractiveness of financing the agricultural sector.
The main criterion for obtaining a guarantee from the Fund of Financial Support of Agriculture is the terms of bank lending. So, the loan amount shouldn’t exceed 5 billion tenge ($12 million), the loan term - not more than 10 years, and the interest rate - not more than 17 percent per annum. The agricultural producer pays a guarantee fee in the amount of 0.1 percent of the loan amount.
The fund provides guarantees up to 50 percent of the loan amount. The size of the guarantee for priority investment projects before the commissioning of the project - up to 85 percent, and after the commissioning - up to 50 percent.