The harvest campaign is coming to an end in the fields of Kazakhstan. And in this matter, an important tool for supporting agribusiness was the program for financing spring field and harvesting work. In 2019, the state allocated 60 billion tenge for lending to agricultural entities. The interest rate for final borrowers was up to 7% per annum. With these funds, more than two thousand agricultural producers replenished their working capital, purchased seeds, and carried out sowing and harvesting work on an area of more than 3.13 million hectares.

Farmers received profitable loans worth 60 billion tenge not only through credit partnerships (CPs), which paid 13.0 billion tenge to borrowers. Second-tier banks (STBs), microfinance organizations (MFOs), regional investment centers (RICs), which issued 33.0 billion tenge, also participated in the issuance of funds. In addition, direct lending was provided through branches of Agrarian Credit Corporation JSC, which amounted to 14.0 billion tenge.

“When distributing funds among regions, the regions’ needs for credit financing were taken into account. According to the data, 80% of the funds from the Ken Dala program went to grain-growing regions: Akmola region -19.3 billion, Kostanay region 12.4 billion and North Kazakhstan region 16.3 billion. The remaining 20% was distributed according to applications from other regions of the country.” , - said Olzhas Baimakhanov, deputy director of the branch of Agrarian Credit Corporation JSC, during the press tour.

The event for the media took place in the Akmola region on the basis of Barys 2011 LLP. The director of the enterprise, Bulat Tanatarov, shared his own experience of working with the products of the Agrarian Credit Corporation, talking about all the advantages of the program for agribusiness.

The Agricultural Credit Corporation is intensifying efforts to develop the “economy of simple things.” This program allows you to expand the amount of lending to entrepreneurs at reduced interest rates. More than two hundred representatives of agribusiness have already shown interest in it, and 47 agribusiness entities have already been financed.

For reference: In 2019, more than 143 billion tenge were allocated through the institutes of the National Holding “KazAgro” for spring field and harvesting work. Of these, through JSC “Agrarian Credit Corporation”, 2,276 agricultural enterprises were financed from all sources for a total amount of 70.1 billion tenge on a sown area of more than 3,860.5 thousand hectares, of which 269 agricultural enterprises were financed from extra-budgetary sources per 10. 1 billion tenge on a sown area of 730.1 thousand hectares.

JSC “Fund for Financial Support of Agriculture” under the “Eginjay” program financed 171 borrowers in the amount of 0.7 billion tenge.

KazAgroFinance JSC concluded 4,217 financial leasing agreements in the amount of 72.8 billion tenge for carrying out spring field and harvesting work, of which 2,472 contracts worth 37.9 billion tenge were for spring field work.