DBK ALLOCATES KZT20 BLN TO SUPPORT KAZAKHSTAN’S AUTOMOTIVE INDUSTRY
Development Bank of Kazakhstan JSC (a subsidiary of Baiterek National Management Holding JSC) provides phased lending to second-tier banks with the aim of financing individual buyers of Kazakhstani passenger cars at the expense of the National Bank of Kazakhstan. To this end, DBK, through the issuance of bonds, has borrowed funds from Kazakhstan Sustainability Fund JSC (a subsidiary of the National Bank Kazakhstan), Strategy reports with reference to the DBK Public Relations Service.
Lending to buyers of passenger cars is carried out as part of the Program for lending to buyers of cars of domestic production, approved by the resolution of the Board of the National Bank of Kazakhstan dated May 31, 2019.
Under the new Program, the first tranche in the amount of KZT 14.5 billion was allocated to the following commercial banks: Halyk Bank of Kazakhstan JSC (KZT 4 billion), SB of Sberbank JSC (KZT 7.5 billion), SB VTB Bank JSC (Kazakhstan) (KZT 3 billion).
The remaining part in the amount of 5.5 billion tenge will be disbursed by the banks until the end of this year.
The credit conditions of the new Program are similar to the criteria of the current Program of preferential automobile lending:
– nominal interest rate-no more than 4% per annum;
– loan term-no more than 7 years;
– loan currency-tenge;
– the cost of one unit of passenger vehicles-no more than 15 million tenge.
Low-cost car loans are available to individuals – the residents of Kazakhstan – for the purchase of cars of domestic production.
On the above conditions, customers are presented with 46 models of cars manufactured by Asia Auto JSC and SaryarkaAvtoProm LLP with a range of such brands as Kia, Chevrolet, Skoda, Hyundai, LADA, UAZ, JAC, Peugeot, Ravon.
Preferential car loans have been in great demand since the first day of the launch of the Program of automobile lending in 2015 and still are in high demand. Taking into account all tranches and revolving disbursement, since 2015, 15.9 thousand Kazakhstanis have received preferential car loans totaling 71.7 billion tenge. The new Program will provide an opportunity for even more Kazakhstanis to purchase new cars of domestic assembly on favorable terms. This is beneficial for both consumers and automakers, Dastan Akhmetov, Managing Director of the Development Bank of Kazakhstan, said.
According to Deputy Director of the regional branch of Halyk Bank of Kazakhstan in Nur-Sultan city Tatyana Arzymbetova, the bank has been participating in the implementation of the State Program of preferential lending for motor vehicles of domestic assembly since the beginning of its implementation.
In total, for the period of the Program of preferential automobile lending, taking into account the revolving disbursement of funds by commercial banks-the Program participants, 15.9 thousand cars were implemented for a total amount of 71.7 billion tenge.
Source: Kazakhtan 2050