Financial support for the agricultural sector has a direct and multiplying effect on the development of villages, the Agrarian Credit Corporation noted. How to ensure affordable financing for agribusiness? The Agrarian Credit Corporation (ACC) calls funding credit partnerships, which cover 98% of rural areas, one of the effective tools for bringing preferential loans to villagers. In 2020, 54% of ACC funds were realized through funding instruments. “Agricultural business is often significantly removed from the regional center, the distance can reach 500-700 km, and here the funding tool significantly facilitates rural residents’ access to the corporation’s credit products. Credit partnerships are a long-time and reliable partner of ACC, the repayment of funds among the participants of credit partnerships is high,” explained Ruslan Eskendir, head of the marketing and PR service of Agrarian Credit Corporation JSC. A network of credit partnerships operates in every region; there are 205 of them throughout the country. Participants in credit partnerships are farmers, they are the founders of the organization and bear joint liability. This, in turn, promotes financial discipline. The advantage of credit partnerships is that they issue loans to agricultural producers at a reduced interest rate, while there is no need for the farmer to travel to the regional center, and the collateral procedure is carried out quickly, which speeds up the processing time for a loan application. For example, in the Akmola region, the Arshaly credit partnership has been operating since 2005, which is serviced by the Nur-Sultan branch of the Agrarian Credit Corporation. If in 2020 there were 67 participants in Arshaly, then this year their number has increased to 80. Compared to last year, the amount of the credit line has also increased. With the financial support of the credit partnership, local farmers updated their fleet of machinery and equipment, purchasing 49 modern combines, tractors, seeding systems and other equipment. As noted by the Chairman of the Board of CT Arshaly Karzhaubay Akhmetzhanov, the credit line was opened for 3.3 billion tenge until 2032, and 2.7 billion tenge has already been disbursed to date. Most of the funds are allocated within the framework of the Ken Dala, Agribusiness and Agricultural Technology programs. “The main program “Ken Dala”, according to which we finance spring field harvesting work. The final borrower receives a loan at 5%. The loan is issued in the spring. In addition, we actively lend under the Agribusiness program. All activities of agricultural producers are financed under this program. It includes the purchase of equipment and livestock. Many areas are subsidized by the state. Thus, interest rates on loans issued to replenish working capital are subsidized by 9% by the state. As a result, the final borrower pays only 5-6%. Also, for the third year now, we have been allocating funds under the Agricultural Technology program for the purchase of agricultural equipment. Here the technology itself is the key. In this area, the interest rate is subsidized by 10% by the state, leaving the borrower to pay 4%. To date, 700 million tenge have been issued under the Agricultural Technology program,” he said. Entrepreneur Sergei Shostov spoke about how a credit partnership works in practice. Now his workshop is engaged in processing meat products and producing semi-finished products. To develop his business in the village of Arnasay, Akmola region, he received a preferential loan (6%) under the Enbek program. With borrowed funds, Sergei Shostov built a workshop and purchased equipment for the production of meat products. Today the workshop produces 8 types of products, including meat cuts, fillets, meat and bone and minced products, smoked meat products, minced meat, kebabs and more. “We had a small cattle breeding project. We received grant assistance, for which we purchased a certain number of ewes. A year later we made a profit. We didn’t stop, we started moving forward and purchased cattle. Then we came up with the idea of not just selling meat, but processing it. For this we needed funds. We turned to a credit partnership, which helped us, and they provided us with a loan under the Enbek program. The loan amount is 6.5 million tenge for 5 years at 6% per annum. Of this, we spent 2.4 million on the purchase of containers, the rest on the purchase of equipment for grinding and cutting meat, two refrigeration chambers, a meat grinder, a product for vacuuming products, and refrigerated display cases,” the entrepreneur said. The Agricultural Credit Corporation pays special attention to the development of the SME segment. Thus, according to the Enbek program, in 2021 it is planned to allocate 11.3 billion tenge for the production and processing of agricultural products; agricultural cooperatives for the organization of service and procurement services for meat, dairy and fruit and vegetable products, for the development of agricultural business in rural areas. Source: Kapital.kz
Financial support for the agricultural sector has a direct and multiplying effect on the development of villages, the Agrarian Credit Corporation noted. How to ensure affordable financing for agribusiness? The Agrarian Credit Corporation (ACC) calls funding credit partnerships, which cover 98% of rural areas, one of the effective tools for bringing preferential loans to villagers. In 2020, 54% of ACC funds were realized through funding instruments. “Agricultural business is often significantly removed from the regional center, the distance can reach 500-700 km, and here the funding tool significantly facilitates rural residents’ access to the corporation’s credit products. Credit partnerships are a long-time and reliable partner of ACC, the repayment of funds among the participants of credit partnerships is high,” explained Ruslan Eskendir, head of the marketing and PR service of Agrarian Credit Corporation JSC. A network of credit partnerships operates in every region; there are 205 of them throughout the country. Participants in credit partnerships are farmers, they are the founders of the organization and bear joint liability. This, in turn, promotes financial discipline. The advantage of credit partnerships is that they issue loans to agricultural producers at a reduced interest rate, while there is no need for the farmer to travel to the regional center, and the collateral procedure is carried out quickly, which speeds up the processing time for a loan application. For example, in the Akmola region, the Arshaly credit partnership has been operating since 2005, which is serviced by the Nur-Sultan branch of the Agrarian Credit Corporation. If in 2020 there were 67 participants in Arshaly, then this year their number has increased to 80. Compared to last year, the amount of the credit line has also increased. With the financial support of the credit partnership, local farmers updated their fleet of machinery and equipment, purchasing 49 modern combines, tractors, seeding systems and other equipment. As noted by the Chairman of the Board of CT Arshaly Karzhaubay Akhmetzhanov, the credit line was opened for 3.3 billion tenge until 2032, and 2.7 billion tenge has already been disbursed to date. Most of the funds are allocated within the framework of the Ken Dala, Agribusiness and Agricultural Technology programs. “The main program “Ken Dala”, according to which we finance spring field harvesting work. The final borrower receives a loan at 5%. The loan is issued in the spring. In addition, we actively lend under the Agribusiness program. All activities of agricultural producers are financed under this program. It includes the purchase of equipment and livestock. Many areas are subsidized by the state. Thus, interest rates on loans issued to replenish working capital are subsidized by 9% by the state. As a result, the final borrower pays only 5-6%. Also, for the third year now, we have been allocating funds under the Agricultural Technology program for the purchase of agricultural equipment. Here the technology itself is the key. In this area, the interest rate is subsidized by 10% by the state, leaving the borrower to pay 4%. To date, 700 million tenge have been issued under the Agricultural Technology program,” he said. Entrepreneur Sergei Shostov spoke about how a credit partnership works in practice. Now his workshop is engaged in processing meat products and producing semi-finished products. To develop his business in the village of Arnasay, Akmola region, he received a preferential loan (6%) under the Enbek program. With borrowed funds, Sergei Shostov built a workshop and purchased equipment for the production of meat products. Today the workshop produces 8 types of products, including meat cuts, fillets, meat and bone and minced products, smoked meat products, minced meat, kebabs and more. “We had a small cattle breeding project. We received grant assistance, for which we purchased a certain number of ewes. A year later we made a profit. We didn’t stop, we started moving forward and purchased cattle. Then we came up with the idea of not just selling meat, but processing it. For this we needed funds. We turned to a credit partnership, which helped us, and they provided us with a loan under the Enbek program. The loan amount is 6.5 million tenge for 5 years at 6% per annum. Of this, we spent 2.4 million on the purchase of containers, the rest on the purchase of equipment for grinding and cutting meat, two refrigeration chambers, a meat grinder, a product for vacuuming products, and refrigerated display cases,” the entrepreneur said. The Agricultural Credit Corporation pays special attention to the development of the SME segment. Thus, according to the Enbek program, in 2021 it is planned to allocate 11.3 billion tenge for the production and processing of agricultural products; agricultural cooperatives for the organization of service and procurement services for meat, dairy and fruit and vegetable products, for the development of agricultural business in rural areas. Source: Kapital.kz
05.01.2026 From January 1, 2026, the Baiterek Holding Unified Contact Center will begin operating on the basis of the Damu Fund - a single entry point for entrepreneurs and applicants.
