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President’s Five Social Initiatives: MLSPP announces number of issued microcredits

by June 7, 2018 General

As noted by Zhenisbek Dulatov, the Five Social Initiatives announced by the Head of State are a new, large-scale step on the road to social modernization that ensures the qualitative improvement in the life and social well-being of every Kazakhstani.

The development of microcredit is being implemented within the framework of the Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021.

In total in 2017, 41.2 billion tenge were provided for microcredits, including 14.2 billion tenge in cities and monocities and 27.1 billion tenge in rural areas. At the end of the year, 7,200 microcredits were issued, including 6.8 thousand in rural areas. A multiplier effect was reached in the form of creating more than 4.5 thousand additional permanent jobs, new production facilities and an increase in the output.

“In 2018, 42 billion tenge will be allocated in the approved budget for the expansion of microcredit, including 31 billion tenge for rural areas and 11 billion tenge for cities and monocities. On behalf of the Head of State, the financing of microcredit was increased further by 20 billion tenge,” Dulatov informed.

Thus, 62.4 billion tenge are provided for the provision of microcredits, taking into account the additional funds allocated, of which:

45.3 billion tenge � for lending in rural areas;

for lending in urban areas � 17.1 billion tenge.

This way, 14 thousand people will be able to receive a microcredit, including 11 thousand in villages, 3 thousand � in cities.

To date, 982 microcredits have been issued for 7.7 billion tenge, of which in rural areas � 498 microcredits for 2.1 billion tenge, cities � 484 microcredit for 5.6 billion tenge.

“In the new program, we are more focused on starting entrepreneurs, self-employed and unemployed,” Dulatov stressed.

To defend business projects and obtain microcredits, unemployed and self-employed citizens need to be trained in the Bastau Business project. Under the Bastau Business project, it is planned to teach the basics of entrepreneurship to 30 thousand people throughout the republic in 2018. To date, 13,279 people have started the training, of which 4,951 people completed their courses.

Also according to Dulatov, about 11 thousand rural residents will be covered by this program. There is a great demand for microcredits in such areas as livestock and crop production. There is great interest from young entrepreneurs who work in the service sector. Now the MLSPP is considering a project on freelancers who work with foreign companies, take orders at home and make software.

In addition, it is planned to develop anchor cooperation around processing agricultural enterprises in order to increase agricultural production and ensure its sale. About 10 billion tenge is allocated under the program for anchor cooperation.

In order to increase the number of recipients, the limits for issuing microcredits are differentiated:

in the countryside � up to 6 million tenge;

for the development of anchor cooperation � up to 12 million tenge;

in cities, monocities � from 15.6 to 19.2 million tenge.

Dulatov added that to optimize the consideration of applications to date, business processes are being automated. Therefore, any participant who wants to learn can directly contact the branches of the Atameken NCE without contacting employment centers. The NCE has an access to a database of self-employed and unemployed. The same work on eliminating the number of required papers from employment centers is planned with financial institutions.

“New measures of the state will become tangible for all citizens of our country. I voiced the main points that we are to solve in the future and this year. We have the potential and opportunities to realize the set goals,” Dulatov summed up.

Source: The Prime Minister of Kazakhstan