Implementation of the President's initiative to expand microcredit will open new opportunities for rural residents — N. Altayev
As noted by Nurzhan Altayev, today there are new tasks set before the Ministry of Labor and Social Protection of the Population on the implementation of the President’s social initiatives.
The Head of State noted that in the development of mass entrepreneurship among the self-employed and unemployed, the mechanism of granting preferential microcredit is especially effective.
After the implementation of the initiative to expand microcredit, self-employed and unemployed citizens will be able to open their own businesses and create new jobs.
"This initiative is very important, because in our country many people who do not have permanent work or are self-employed want to open their own business, engage in some kind of entrepreneurship, receive income, and create new jobs. But at the same time they do not have seed capital," said Nurzhan Altayev.
According to the Vice Minister, to date, second-tier banks do not give loans to rural areas for a number of reasons. Individuals who want to start their own business, engage in entrepreneurial business, should be trained how to start their own business, and after that they can be provided with starting money.
"In the village microcredits will be provided through the Fund for Support of Agriculture. Their interest rate will be only 6% per annum. There is no such interest rate in the villages. This is a very significant help from the state," said Nurzhan Altayev.
If the villager takes this loan for the development of livestock or the creation of a cooperative with his colleagues, then this loan is granted at 7% per annum.
At the same time, Nurzhan Altayev recalled that in 2017 the Program for the Development of Productive Employment and Mass Entrepreneurship was launched, within the framework of which the instruments for supporting the citizens' entrepreneurial initiative are being implemented.
In 2017, the total of 7 227 microcredits were issued or 124% of the plan (5 800 microcredits), of which in the villages and small towns, 6,791 people received microcredits, in cities – 436 people. Out of those who received microloans, 4127 people or 57.1% became entrepreneurs (start-up projects), starting their own business. Within the framework of the Bastau-Business project, training in entrepreneurial skills covered 15000 people or 100% of the plan, 8285 people defended business projects, 3314 people received microcredits.
As a result, the implementation of the activities of the Program for the Development of Productive Employment and Mass Entrepreneurship in 2017 made it possible to contribute to the growth of operating SMEs by 3.6%.
In 2018, the total funding for the Program is 87 billion tenge.
To fulfill the task of the Head of State in full, it is planned to implement the following mechanisms.
Of the additionally allocated 20 billion tenge, to direct 14 billion tenge for lending in the villages, the remaining 6 billion tenge — to use for lending in cities.
The limits for issuing microcredits will be revised differentially for the city and the village. In cities and for projects of anchor cooperation in rural areas, the average size of microcredit will not exceed 6.5 million tenge. And for other projects in the countryside — no more than 3.5 million tenge.
It should be noted that the development of the entrepreneurial initiative, along with ensuring the employment of the participants of the Program, also gives a multiplier effect in the form of creating additional jobs, creating a new production or service development and increasing the output of products.
Thus, the expansion of microcredit will allow to cover more than 14 thousand people in 2018 by lending, and taking into account the creation of additional new jobs, the total coverage of employment will be about 40 thousand people.
Nurzhan Altayev also talked about the mechanism for obtaining microcredits. So, the villager should contact the PSCs, the branch of the Atameken NCE or the akimat of the aul region. His application will be immediately sent to employment centers. There he will be checked through the Enbek information system, whether he is really unemployed or self-employed. After that he will be given advice. Then he will be sent for training through the Bastau-Business program. After the training he receives a certificate. With this certificate, he will already be eligible to receive a loan at 6% per annum for 5-7 years.
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