The Prime Minister of Kazakhstan

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Damu fund ready to provide loans to SME for 24 billion tenge at 8.5% in 2016 - Tuleushin

06 May 2016, 19:19

In 2016, the “Damu" Fund will provide credit resources to the SMEs in all regions of the country in the amount of 24 billion tenge with a final rate of no more than 8.5% for a period of 5-7 years, despite the low yield of such lending, Chairman of the Board of JSC "Development Fund "Damu" Kanysh Tuleushin said.

"We see that the entrepreneurs and the population needs new tools, and we want to give something that is really needed and expected. So, the first thing we heard is the availability of funds. It is necessary to reduce the lending rate and ensure the long funding. Therefore, if the average rate on final borrower was about 14% last year, but we do not strive for profitability, so we want this year to extend credit in all regions of the country in the amount of 24 billion tenge, where the final rate will not exceed 8.5% for a period of 5-7 years ," Tuleushin said.

                         

He said that entrepreneurs also expressed wishes to reduce the time frame for consideration in the second-tier banks.

"Terms of consideration reaches 3-4 months. So we took the EBRD's experience, improved and trained credit officers of banks. And now the average period of consideration for small loans at 20-30 million tenge is 3-7 days. About 50 projects were approved, there is no default, and we believe that it is necessary to implement the technology in all banks in all regions of the country, " the head of the board of the fund continued.

He also drew attention to the accompanying paperwork for loans entrepreneurs.
Tags Damu loans rate