The Prime Minister of Kazakhstan

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The problem of collateral is solved by guaranteeing microcredits for the first time

10 April 2017, 12:43

First Vice Minister of agriculture of the Republic of Kazakhstan Kairat Aytuganov reported about this during the meeting of the Government of the Republic of Kazakhstan under the chairmanship of the Prime Minister of the Republic of Kazakhstan, Bakytzhan Sagintayev.

The Ministry is developing the second direction of the Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021.

KazAgroGarant JSC will act as guarantor in rural areas.

The program provides for the provision of microcredits in rural areas and in small towns - up to 5 years, for projects in the field of animal husbandry and the creation of agricultural cooperatives - up to 7 years. The amount of guarantees will be up to 85% for start-up entrepreneurs, up to 50% for active entrepreneurs. For these purposes, 2, 8 billion tenge was allocated from the republican budget of 2017.

Microcredits in rural areas and small towns are provided by microfinance organizations and credit partnerships through their funding of Agrarian Credit Corporation JSC and direct lending to the Program participants through Fund of Financial Support for Agriculture JSC.

To stimulate participation in microfinance organizations in the program and to reduce the interest rate, an instrument for subsidizing operating expenses of MFIs was introduced. The amount of subsidies will be 10% of the volume of issued microcredits.

Agrarian Credit Corporation JSC formed a list of 18 microfinance organizations and 167 credit partnerships. As of April 1, 2017, 2,221 jobs were created.

In February of this year, outreach seminars were held in all 160 regions of the country to explain the foundations of cooperation and the Program of productive employment. At the same time, the mayor’s offices of Almaty, Atyrau, East Kazakhstan regions should step up work in this direction.

At the end of the speech, K. Aituganov reported that all necessary measures were taken by the Ministry to achieve the goals and objectives of the Program.