ACC continues to finance spring field and harvesting work.

Ensuring the country's food security is one of the main tasks of the state. A major role in this issue is played by the effective implementation of spring field and harvesting work (VP&UR)

Additional 300 billion tenge for spring field work

Agricultural Credit Corporation JSC (ACC), a subsidiary of National Management Holding Baiterek JSC, is steadily improving its activities and increasing the volume of financing for the agricultural sector.

For example, if in 2021 the volume of preferential lending for spring field and harvesting work (SP&H) within the framework of the “Ken Dala” program amounted to 70 billion tenge, then in 2022 the volume doubled - to 140 billion tenge. Over the course of three years, the Corporation has been annually issuing loans for internal development and sustainable development in the amount of 140 billion tenge.

And if in previous years loans were issued short-term, and they had to be repaid before December 1, now the financing is medium-term, repayment periods have been increased (50% of loans are currently repaid before December 1, the remaining 50% - before March 1 of the next year) , which allows farmers to sell their crops at a better price.

In addition to 140 billion tenge allocated through budget lending, additional funding has been increased by 300 billion tenge. This was done as part of the execution of the order of the President of the Republic of Kazakhstan, with the support of the Government, by the National Management Holding "Baiterek" and JSC "Agrarian Credit Corporation".

Due to this additional funding, the VPRiUR ensured coverage of 4.0 million hectares of crop area.

The new conditions for financing farmers are unprecedented; the mechanism addresses a number of issues important to farmers.

First. A preferential interest rate for borrowers is provided at 5% per annum.

Previously, farmers, in order to reduce interest rates and receive subsidies, were forced to contact local agricultural departments, sign new obligations, and wait for the allocation of funds, which greatly affected their financial well-being. Now there is no need for this; as part of this product, the Corporation has initiated changes to the relevant state subsidy rules, thanks to which the most profitable and convenient conditions have been created for farmers. All work on subsidizing the rate was undertaken by the lender, represented by the Agricultural Credit Corporation. The farmer receives an already reduced rate without the need for any additional operations.

Second. Often, agricultural entities, when applying to the Corporation for credit funds, are faced with the problem of a lack of collateral. This problem is voiced by all entrepreneurs and public organizations in the agricultural industry.

In accordance with the new state support mechanism, 85% of the loan amount to farmers under the Ken Dala 2 program is guaranteed by the Damu Entrepreneurship Development Fund.

Thus, when receiving loans for spring field work, farmers only need to provide collateral in the amount of no more than 15% of the total loan.

State support measures are provided on a regular basis

Supporting farmers and constantly improving its services is the main task of the Agricultural Credit Corporation.

Thus, last year, agricultural producers in grain-growing regions suffered due to unfavorable weather conditions, which primarily affected their ability to fulfill loan obligations. To support them, loans were extended for a total deferred amount of 56 billion tenge.

This year, as part of the execution of the order of the Head of State to support farmers affected by floods, deferred payment terms were approved for clients of ACC and its subsidiary KazAgroFinance JSC (KAF).

All payments according to the 2024 schedules are distributed over subsequent payments from 2025 until the end of the financing period in equal payments. For projects with a loan expiration date in 2024 - 2025. an extension was provided for a period of no more than 24 months, depending on the borrower’s area of activity.

Loans from affected borrowers are not subject to fines and penalties for late payments arising from the impact of floods.

In order to expedite the consideration of ACC and CAF applications, a simplified process for reviewing applications based on a minimum number of documents has been approved.

To receive advice and submit applications for the “Ken Dala 2” program, you must contact the nearest regional branches of JSC “Agricultural Credit Corporation”. Additional information is available on the website Agrocredit.kz and by Call center numbers: 5353 for Kcell, Activ, Beeline subscribers and 8 701 006 19 91 for Tele 2, Altel.