KAZAGRO LASHED OUT OVER KZT 477 BLN ON DEVELOPMENT OF KAZAKHSTAN’S AGRICULTURAL SECTOR IN 2019
The size of financing of Kazakhstan’s agro-industrial complex through the financial institutions of KazAgro National Manager Holding is increasing annually. In 2019, KazAgro funded agribusiness entities in the amount of more than 477 billion tenge, of which more than 448 billion tenge was allocated for agricultural lending and about 29 billion tenge for the purchase of grain, Startegy2050.kz has learnt from KazAgro’s press service. The loan portfolio of KazAgro amounted to 886 billion tenge, and the number of borrowers increased to 77 thousand. The share of small and medium-sized businesses among borrowers is over 97%. Thanks to the financial support of the National Holding last year, 37 thousand rural residents were provided with employment and received new workplaces.
In 2019, 56 investment projects were funded with a total value of 84 billion tenge, of which 24 projects with a total value of 21 billion tenge were put into operation, where more than 770 jobs were created. In 2020, it is planned to commission 31 investment projects with a total value of 56 billion tenge with the creation of about 3 thousand jobs. Acceptance of applications for financing continues.
KazAgro continues activities related to the reform and further enhancement of the effectiveness of its activities. In the framework of the formation of the compact holding with high quality corporate governance, KazAgroGarant JSC was merged with Agricultural Financial Support Fund JSC, KazAgroProduct JSC was merged with Agrarian Credit Corporation JSC, KazAgroMarketing JSC was liquidated. During 2020, Food Corporation will continue to solve government tasks to ensure food security in the grain market, but already in the structure of the Ministry of Agriculture of Kazakhstan. Thus, 3 specialized financing companies remain in the Holding structure:
– Agrarian Credit Corporation JSC will be engaged in lending to agribusiness entities, funding of credit partnerships, microfinance organizations, second-tier banks, leasing companies.
– Fund for Financial Support of Agriculture JSC – micro-lending to small businesses, guaranteeing loans, participation in the insurance system in the agricultural sector.
– KazAgroFinance JSC – leasing of agricultural machinery and equipment.
It should be noted that last year KazAgro Holding fully repaid its foreign currency liabilities and adopted a transformation program that provides for breaking even by the end of 2020.
Source: Kazakhstan 2050