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President’s Five Social Initiatives to increase number of microloan recipients by 2 times – MLSPP

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The fourth social initiative of the Head of State is aimed at expanding microcredit, including in rural areas. This initiative simultaneously solves complex problems on development of business, creation of workplaces, growth of incomes of the least provided category of the population.

As noted by Yerbolat Abulkhatin, the microcredit is being improved today under the Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021 and is the most effective mechanism for the development of mass entrepreneurship.

“In total in 2017, 41.2 billion tenge was provided for the Microcredit Program, including 14.2 billion tenge in cities and monocities and 27.1 billion tenge in rural areas. At the end of the year, 7200 microcredits were issued, including 6.8 thousand in rural areas,” Yerbolat Abulkhatin said.

The result is a multiplicative effect in the form of creating more than 4.5 thousand additional permanent jobs, new productions and an increase in the output.

In 2018, 42 billion tenge was provided for the microcredit program in the approved budget, including 31 billion tenge for rural areas, 11 billion tenge for cities and monocities.

“On behalf of the Head of State, the financing will be increased by 20 billion tenge and will make 62 billion tenge this year. This will help provide microcredits for more than 14 thousand people,” said the Deputy Director of the Employment and Labor Market Development Department of the MLSPP.

Of the additional 20 billion tenge allocated, about 14 billion tenge will be directed for lending in villages and small towns. Of this amount, 10 billion tenge is proposed to be spent on the implementation of anchor cooperation projects around large processing agricultural enterprises. This will ensure a guaranteed sale of products to recipients of microcredit. The remaining 6 billion tenge is proposed to be used for lending in cities and single-industry towns.

Also, according to Y. Abulkhatin, the Ministry of Labor and Social Protection of the Population together with the concerned ministries and the Atameken NCE is engaged in detailed elaboration of specific mechanisms for the implementation of the fourth initiative of the President. The work is carried out in two directions: organizational arrangements and legislative changes.

Thus, at present, a draft resolution is being prepared to introduce changes and additions to the Program for the Development of Productive Employment and Mass Entrepreneurship. In accordance with the approved Roadmap for the implementation of the Address of the Head of State to the people, President’s Five Social Initiatives, amendments and additions to the Program are planned for May of this year.

“We expect that this year the number of microcredit recipients will double in comparison with 2017. Almost 14 thousand people should receive microcredits. The results of microcredit are not only that an unemployed person will take out a loan and start his own business. More importantly, these people will create additional jobs in the development of livestock, the service sector. There is also an increase in the taxable base for local executive bodies, an increase in the number of active entrepreneurs. In a word, the perspectives are very broad,” Y. Abulkhatin summed up.

Source: The Prime Minister of Kazakhstan

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