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12 agricultural cooperatives to be financed in 2017

by April 11, 2017 Fun

Deputy Chairman of the Board of JSC “Holding “KazAgro” Aigul Mukhamadiyeva, Chairman of the Board of JSC “Agrarian Credit Corporation “Gulnaz Atamkulova and Deputy Chairman of the Board of JSC “NC “Food Corporation” Sabit Kashkimbayev participated in a press conference.

As it is known, in March 2017 KazAgro Holding received an annual budget loan of 60 billion tenge for financing spring-field and harvest works.

“This year credit mechanism is synchronized with the state program for the development of agro-industrial complex for 2017-2021 and is focused on diversification of crop areas. To this by the end of April 1 of the current year in a prime order applications were received and financing on11 priority crops was carried out: sunflower, rape, flax, soy, barley, sugar beet, rice, grain corn, cotton, oats, and potatoes. Since April 1 applications and financing is provided for all types of crops”, – Deputy Chairman of the Board of JSC “KazAgro” Holding” Aigul Mukhamadiyeva pointed out.

In accordance with the plan established by the Ministry of Agriculture, priority crops should be financed on the area of 567.4 thousand hectares. Based on the received applications, there is an increased interest of agricultural producers for sowing rapeseed, flax, barley, rice. At the same time, the low activity of agricultural producers is observed in 3 priority crops: sugar beet, cotton and corn for grain. The work on financing of these directions will be continued until the plans are reached.

Besides that, during the press conference it was noted that this year the money from the budget went directly to Agrarian Credit Corporation and financing is carried out in 3 directions: through the financing of the second-tier banks – the final rate for borrowers constitutes 5% per annum. In addition, through the financing of credit partnerships, regional investment centers, and microfinance organizations – the final rate for agricultural producers – 6% per annum and the 3rd option – direct crediting by the Agricultural Producers Corporation under the guarantee of the second-tier bank at 2% per annum, which, taking into account the cost of the Bank’s guarantee, will make about 6% per annum.

“The program of financing agricultural cooperatives through the second-tier banks has continued. If in 2015 only 2 SECs were financed, then in 2016 there are already 10. In the current year 12 cooperatives have applied for financing”, – the Speaker noted.

Food Contract Corporation continues to participate in stimulation of the spring-field works by concluding contracts for the purchase of agricultural products, thereby providing agricultural producers with a guaranteed sale of the crops.

Moreover, along the line of JSC “KazAgroFinance” for the purchase of equipment for the spring-field and harvest works of the current year, it is planned to send 11.6 billion tenge.

Source: Kazakhstan 2050