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Microcredit funding under productive employment program to start in May

by April 10, 2017 Legal

Under the microcredit program, up to 8,000 MCIs (18 million tenge) will be provided for up to 7 years with a final interest rate of no more than 6%. The microcredits will be issued in the cities through DAMU Entrepreneurship Development Fund JSC. 10 billion tenge is provided annually for microcrediting of entrepreneurial activities in the cities.

Guarantees will be provided up to 50% from the cost of microcredits for existing entrepreneurs and up to 80% for start-up entrepreneurs.

According to the minister noted, DAMU Entrepreneurship Development Fund JSC will act as the guarantor of the state in the cities. 1.2 bln tenge is provided for guaranteeing microcredits in the cities.

“To date, local executive bodies determine the relevant limits on funds from the local budget in accordance with the established procedure. As of March 31st, 2017, the Government of the Republic of Kazakhstan determined the relevant conditions for budget lending by the funds financed from the republican budge. The funds will be received by local executive bodies until the end of April this year,” T. Suleimenov said.

The relevant rules regulating the procedure for microcrediting and guaranteeing were adopted by the departmental order of the Ministry in January 2017 and registered with the Ministry of Justice in accordance with the established procedure.

Beginning rural entrepreneurs will have the opportunity to undergo an adapted training course on the basics of doing business under the Bastau Business project.

The mayor’s offices together with DAMU Entrepreneurship Development Fund JSC conducted targeted consultations with start-up entrepreneurs, organized seminars-meetings, information and reference materials are placed in the republican and regional mass media at Entrepreneurs Service Centers and Entrepreneurship Support Centers in all regional centers of the country to promote the program.

It should be reminded that the implementation of the Program of productive employment and mass entrepreneurship was discussed at the meeting of the Government.

Source: The Prime Minister of Kazakhstan