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Sunday, September 26th, 2021

Three thousand microcredits to be financed this year – Ministry of National Economy

by July 10, 2018 General

After the consideration of the current implementation status of the Program for the Development of Productive Employment and Mass Entrepreneurship, the Prime Minister drew attention to the need to create conditions for the development of entrepreneurial potential, opening and running business, especially in the countryside. Today the unemployed, self-employed citizens and businesses are given the opportunity to obtain preferential microcredits for the implementation of business projects without sectoral restrictions. Bakytzhan Sagintayev noted that it is necessary to take control of the matter of development of funds allocated for the provision of microcredits.

“It is planned to provide 14,000 unemployed and self-employed with microcredits, also, under the initiative of the Head of State, the volume of microcredit financing was increased by 20 billion tenge. The half-year is over, we need to eliminate all the existing reasons that impede the development of this direction,” the Prime Minister said.

In his turn, Minister of National Economy Timur Suleimenov stressed that the provision of microcredits in cities under the Program was realized for the first time in 2017. In the microcredit scheme, seven second-tier banks and two microfinance organizations are involved.

“The total portfolio of microcredit in cities, taking into account the funds of the previous year, is 24.3 billion tenge. Of these, in 2017 funds amounted to 11.9 billion tenge, and in 2018 12.4 billion tenge, including 6.1 billion tenge in addition allocated under the Five Social Initiatives of the Head of State,” Suleimenov informed.

According to the minister of national economy, at the expense of the funds of 2017, 1,006 projects were financed for 11.1 billion tenge, which allowed the program participants to make the production worth 7.6 billion tenge, pay taxes to the budget in the amount of 299 million tenge.

“At the moment, at the expense of the funds of 2018, 226 projects for 2.6 billion tenge were financed and approved, and projects worth 3.4 billion tenge are under consideration in second-tier banks,” Suleimenov said, stressing that in the current year the task is to finance 3,000 projects.

Along with the provision of microcredits on preferential terms, there is also the service of state guarantee in case of insufficient collateral of potential entrepreneurs.

“At present, 355 contracts of guarantee for 2 billion tenge have been concluded, of which in 2017 172 contracts amounting to 967 million tenge, in 2018 183 contracts amounting to 1.03 billion tenge. Almost every third loan is guaranteed,” he said.

In addition, in order to promptly raise funds to the population, in December last year, measures were taken to reduce the maturity of funds by second-tier banks up to 6 months (from the current 12 months), the possibility of purchasing residential real estate and land plots with subsequent mandatory change of purpose was provided.

According to Suleimenov, in the current year, in order to support small projects of beginning entrepreneurs, active entrepreneurs are excluded from the Program.

First Vice Minister of Agriculture Arman Yevniev, in his turn, informed that within the second direction of the Enbek Program, the Ministry of Agriculture is working to provide microcredits to the Program participants implementing or planning to implement business projects in rural settlements and small towns.

“To fulfill the above activities in 2018, the republican budget provides for a budgetary credit of 44.7 billion tenge, including 13.9 billion tenge under the fourth initiative of the President’s Five Social Initiatives. At the expense of these funds it is planned to provide 11,000 microcredits,” Yevniev informed.

In 2018, under the Bastau-Business project, it is planned to train 30,000 self-employed and unemployed citizens, of whom at least 6,000 participants must start or expand their business

Vice Minister of Education and Science Bibigul Assylova assured that on the first direction of the Program for Productive Employment and Mass Entrepreneurship, the Ministry of Education and Science coordinates the work on technical and vocational education of personnel.

“The program involves 320 colleges with 20,500 students, of which 15,200 after the ninth grade, and 5,300 after the eleventh grade. Of the students admitted to colleges, about 60% are citizens from socially vulnerable sections of the population,” Assylova said.

In addition, there are ten mobile training centers for individuals from remote settlements in the country’s five regions (Aktobe, Akmola, East Kazakhstan, Kostanay, Mangistau).

“Since April 2018, 337 people have started training on the basis of mobile centers, 143 people have been trained, of which 93 people have been employed,” the vice minister informed.

Meanwhile, since the implementation of the Program, the state order for personnel training has been restructured within the needs of the regions. The training content has been changed through introducing 246 modular training programs into the teaching process.

“The analysis showed that the personnel training under the Program, compared to the current trend, increased by 17.6% for the services sector, by 10.2% for agriculture, 13.2% for transport, 5.5% for construction, 3.9% for the fuel and energy complex, 3% for ICT, 4.8% for the basic industries, for tourism 1%, and trade 0.6%. Their distinctive feature is practical orientation, active participation of employers in the development of curricula and programs. Thus, modular programs provide level integration, qualification of a middle-level specialist through obtaining working qualifications or entering the labor market after obtaining working qualifications. To date, 100% of the colleges are provided with these educational programs,” the vice minister said.

In conclusion of speeches on this topic, Chairman of the Atameken NCE Ablay Myrzakhmetov added that for two months, about 4,500 people have participated in the short-term training system under the Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021. To date, 118 training centers created by enterprises participate in the process, preparing the population for the new specialties. Already 1,089 people have been trained, 372 of them are employed.

Source: The Prime Minister of Kazakhstan