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26,7 billion tenge allocated through the Fund for microlending rural entrepreneurship in 2018 – Zh. Omarov

by April 4, 2018 General

The Head of State in the Five Social Initiatives set the task of expanding microcredit. In particular, it was entrusted to allocate an additional 20 billion tenge in 2018, bringing the total amount of microcredit to 62 billion tenge. As a result, the total coverage by microcrediting will be more than 14 thousand people, which will double the level of 2017.

As the chairman of the Board of Fund for Financial Support for Agriculture JSC, Zhandar Omarov, said, the state provides preferential credits in the framework of the Program for Productive Employment and Mass Entrepreneurship for 2017-2025. This type of financing is an effective mechanism for the development of entrepreneurship in the countryside.

“If the fund previously planned to issue microcredits for 20 billion tenge this year, then taking into account the additional funds allocated, as well as taking into account the return of previously allocated funds, this amount is about 26.7 billion tenge,” said Zhandar Omarov.

Basic principles and mechanisms, priority directions, categories of citizens are all reflected in the Program for the Development of Productive Employment and Mass Entrepreneurship, as well as in the Rules for its implementation.

Lending conditions: microcredits are granted for up to 5 years, for projects in the livestock sector � up to 7 years. The interest rate is up to 6% per annum. The size of the microcredit should not exceed 8 thousand MCI � this year it is about 19 million 240 thousand tenge. In accordance with the Loan Rules, no less than 20% of the amount of funds allocated should be allocated for financing start-up projects.

Zhandar Omarov noted that last year under the Program, 5694 projects were financed for the amount of 19.3 billion tenge. Including on launch projects, there were 3426 projects worth 11.5 billion tenge. That is, about 60% was allocated to start-up projects, thereby 20% threshold level was exceeded.

In the process of implementing the Program for Productive Employment and Mass Entrepreneurship, the Fund interacts with many regional organizations and local executive bodies, including the employment centers, which provide a referral to potential program participants, Atameken NCE, which conducts training, with district and regional akimats, departments of agriculture. Lending is carried out in accordance with the priorities of the regional map of specialization of regions and districts.

In the current year, under the Program, the Fund plans to allocate 26.7 billion tenge to finance projects.

First Deputy Chairman of the Board of Agrarian Credit Corporation JSC, Nurzhan Seisenbayev, in his turn, informed that within the Program the Corporation in 2017 issued more than 2 thousand loans for a total of over 12 billion tenge. In general, financing under the Program allowed to create more than 2340 new jobs.

“If at the beginning of the year Agrarian Credit Corporation planned to participate in the sum of up to 12 billion tenge, then thanks to the Five Social Initiatives of the President it is planned through credit partnerships, microcredit organizations to provide loans for the development of business in the amount of 20 billion tenge,” said Nurzhan Seisenbayev.

Source: The Prime Minister of Kazakhstan