Minister of Agriculture Aidarbek Saparov reported at the Government session on the results of new approaches to financing the agro-industrial complex and plans to work in this direction.

He noted that in 2024, the introduction of favourable credit products at 5% per annum allowed farmers for the first time to get the opportunity to purchase in full the necessary inventory, as well as to lease a sufficient amount of agricultural machinery.

As a result, the area covered was 5.8 million hectares or 25 per cent of the total sown area, and 4.3 thousand units of Kazakhstan-made agricultural machinery were purchased.

By guaranteeing 85 per cent of the loan amount for IDA, access to concessional lending for small and medium-sized farmers with insufficient collateral was expanded. The launch of a programme of preferential lending to processing plants to replenish working capital for a total of 35 billion tenge was carried out.

"This year the work in all these areas will be strengthened. Thus, the volume of preferential lending to the WPR will amount to 700 billion tenge. Taking into account the early financing of the sowing season of the current year, which started in November last year, today more than 1.8 thousand agricultural enterprises have already been financed for 206 billion tenge. This year it is planned to provide coverage of at least 8 million hectares of sown areas," Aidarbek Saparov said.

The Minister added that the organisation of preferential leasing to the amount of 200 billion tenge will allow to purchase 6 thousand units of agricultural machinery of domestic production.

It was also noted that an important factor in the availability of credit was the connection in 2024 SPK to the financing of the WPR.

"Last year, 7 SPK attended this programme. Today, only 4 SPKs are actively participating in the programme. In this regard, we ask to instruct regional akimats to strengthen the work on financing of agrarians through SPKs," Aidarbek Saparov emphasised.

According to the department, direct subsidising of financial institutions will be introduced to expand the financing of the agro-industrial complex: 48 billion tenge will be allocated this year through ACC to support processing enterprises for the purchase of working capital.

It is also planned to launch a preferential product in the amount of 50 billion tenge to replenish working capital for livestock breeding, similar to the UDP.

In conclusion, the Minister of Agriculture stressed that a multiple increase in concessional financing of WPR allowed to exclude subsidising interest rates. This will allow a phased transition from subsidies to concessional lending and reduce the burden on the local budget.

#Agriculture #Finance #Government session #Investments

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