To support the production of 250 items of goods in the processing industry, 400 billion tenge is provided under the credit program “economy of simple things.” Deputy Chairman of the Board of JSC KIDI Chingis Akhmetov announced this at a press conference in the Government’s press center.

For the implementation of the President’s instructions given in the framework of the Address “Growing Welfare of Kazakh Citizens: Increase in Incomes and Quality of Life,” a specific list of goods for the development of the “economy of simple things” was defined.

As noted by the Deputy Chairman of the Board of JSC KIDI Chingis Akhmetov, the goods were carefully selected according to many criteria, first of all, they had to fall into the category of daily consumption or used by the people of Kazakhstan and have a high import component.

“In order to get a concrete positive effect, the Government defined a specific list of goods that we want to see at the output. Thus, we target not only the development of the production of the entire processing industry, namely, those goods that are most in demand by the population. Today, there are 250 goods in the processing industry,” said Akhmetov.

Second-tier banks are involved in the lending mechanism itself; today, eight banks have already want to participate in this program. At the same time, the list of willing banks will grow, since the proposed conditions are preferential, both for entrepreneurs and for second-tier banks. The final rate for a business based on state subsidies will be 8%. The maximum rate from a bank to a business is no more than 15%, of which the state can subsidize 7%.

“At present, most of the business that operates in the market is re-credited, there are problems with collateral, so we proposed a guarantee mechanism. According to our information, a large part of the business that is operating today requires the re-loading of production, namely the replenishment of working capital. To this end, we proposed to revise these thresholds, that is, to send 50% of the money for investment purposes, and 50% for replenishing working capital. At the same time, in order not to dissipate money for other areas, it was proposed to replenish working capital not to use for repayment of previously received debts, tax debts, but to send money for the purchase of raw materials, remuneration of employees, that is, those specific things that will affect the production of targeted goods,” explained Akhmetov.

It should be noted that the implementation of the Roadmap in the medium term will increase the share of local content in the procurement of manufactured goods by more than 50%, improve the quality of products and reduce the volume of counterfeit products. The implementation of the proposed measures will allow to annually increase the production of building materials, products of light and furniture industry by 73 billion tenge. In general, the development and support of business projects in the economy of simple things will allow to create 16 thousand jobs by 2025 and reduce the share of product imports from 59% to 37%. This will bring in the budget 1.1 trillion rubles of taxes.

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