Kazakhstan reduced lending rate for spring field works
“This year a budget loan in the amount of 60 billion tenge has been allocated to finance the spring field and harvesting operations. Within the framework of these funds, it is planned to finance 1,500 agribusiness entities, coverage of sown areas will be 3 million hectares”, the report reads.
It should be noted that the rates for carrying out of the spring field works this year have been significantly reduced. Farmers can get a loan directly in the Agrarian Credit Corporation under 2%, in exchange for the previous 5%. If the loan is issued through a second-tier bank, the lending rate for an ultimate borrower will not exceed 6%, since the rate for the bank is also reduced from 3.7 to 2%. If the financing is through the credit partnerships or microfinance organizations, then for a final borrower the rate will not be more than 6%.
To obtain a loan from the corporation, farmers can apply to one of 13 regional branches at their place of residence/activity or to the central office in Astana.
In order to increase the linkage of the state resources to the solution of tasks in the State Program for the Development of the agribusiness for 2017-2021, lending is carried out taking into account the priority of crops, and oilseeds and fodder crops are financed as a matter of priority.
It should be noted that grain producers in Kazakhstan can also apply for a budget loan. As mentioned above, out of 60 billion tenge allocated from the state budget, 22 billion tenge is reserved for priority crops up to April 1. The remaining 38 billion tenge is issued for all the rest, including cereals. After April 1, the amount of 22 billion is withdrawn from the reserve and the balance of unused funds is issued for all crops without exceptions and priority.
In addition, this year, special attention will be paid to the quality of seeds. It should be noted that within the framework of the State Program, the mechanism for supporting seed production has been improved. So, from this year, subsidies for original and elite seeds have been renewed, and the seeds of the first reproduction will be subsidized only by priority crops and without minimum standards. In addition, subsidies for elite seedlings of fruit and berry crops, grapes and hybrids of the first generation will be continued.
By the proposal of the Ministry of Agriculture, at the beginning of the season of spring field works, the excise rates for diesel fuel were reduced from April to May this year from 9,300 tenge/ton to 540 tenge/ton.
In the long run, this will allow our villagers to save about 2 billion tenge.
In 2017, agricultural crops are planned to be located on an area of almost 22 million hectares, which is 311 thousand hectares more than in 2016. The area of spring sowing will be 18.5 million hectares.
Source: Kazakhstan 2050