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Saturday, August 24th, 2019

Development of “economy of simple things”: 600 billion tenge allocated to increase availability of state support measures for business


The vice minister informed that starting from 2019, 600 billion tenge was allocated on behalf of Elbasy to solve the problem of affordable lending to develop the economy of simple things.

Today, 365 commodity items from 65 types of economic activity were determined. These loans are subsidized through the Business Roadmap 2020.

As of May 1, 2019, banks approved 28 applications for 14.9 billion tenge. The second tier banks are considering 104 projects for 139.2 billion tenge. At the stage of preparation of documents, there are 729 projects worth 613.4 billion tenge. The Damu Fund approved subsidies for 24 projects for 8 billion tenge.

At the same time, in order to increase the availability of business financing, measures were taken to increase the share of working capital loans from 30% to 50% under the economy of simple things. A tool to guarantee the “economy of simple things” through the Business Roadmap 2020 has been implemented. It is also proposed to increase funding through the Roadmap 2020.

The number of applications for subsidies and guarantees under the Business Road Map 2020 program is growing every year.

On behalf of Elbasy, an additional 30 billion tenge will be allocated to this program annually.

Alpyssov stressed that akimats should be interested in the development of regional economies. Therefore, local executive bodies should jointly finance state support measures.

For example, the Almaty Akimat out of additional reserves allocated 1.9 billion tenge for subsidies. The Akimat of Shymkent also allocated 250 million tenge out of additional reserves for guaranteeing. Atyrau Regional Akimat allocated 600 million tenge for subsidies. The rest should follow the example of these akimats.

Entrepreneurship is the most important link in the sustainable economic growth of the state and the welfare of the population. In general, there is a positive trend in business development. The volume of government support measures for businesses is increasing, said the vice minister.

Alpyssov said that in order to further stimulate small and mediumsized businesses, the seventh package of legislative amendments was adopted on the development of the business environment aimed at creating favorable conditions for growth of entrepreneurial activity.

As part of the extension of the Business Roadmap 2020 to 2025, the concept of the program was developed, a working group was created and discussions started at all levels.

Amendments have been drafted to improve the financial support instruments in terms of:

reducing the load on collateral by increasing the size of the loan to guarantee;

involving microfinance organizations;

increasing the share of working capital loans;

increasing the requirements for effective business projects;

expanding the tools of the State Program (franchise, strengthening nonfinancial support for SMEs, expanding priority industries, etc.), etc.

The vice minister invited the business community to actively participate.

We are ready to consider all the proposals. I am convinced that these measures will ensure the availability of business support and financing measures, as well as provide an opportunity to increase the contribution of business to the country’s economy. It is important to take care of entrepreneurship. The ministry will always work on this, said Alpyssov.

Source: The Prime Minister of Kazakhstan