How Agrarian Credit Corporation supports Kazakhstan's sugar industry

Within the framework of fulfillment of the Government's order, the National Managing Holding “Baiterek” and JSC “Agrarian Credit Corporation” (ACC) in a very short time attracted and allocated financing to social-entrepreneurial corporations for 12 months for further crediting of domestic sugar factories in the amount of more than 25 billion tenge. Funds are allocated for replenishment of working capital at 1.5 percent. Purchase of sugar beet will be realized exclusively from Kazakhstani farmers. At that, the final rate for the factories will be from 1.5 to 5 percent. Funds will be raised from the private capital market.

As part of these measures, for example, JSC RIR “SPK Zhetysu”, the ultimate borrower of which is a sugar factory LLP “Aksu kant”, located in the village of Zhansugurov Aksu district of Aksu region Zhetysu, as of October 4, opened a limit for replenishment of working capital in the amount of 15 billion tenge and has already issued two tranches.

Representatives of SPK Zhetysu submitted a full package of documents to the corporation on September 12, and on September 16 a framework agreement was signed. It should be noted that this financing is short-term and is aimed only at current costs associated with the purchase and processing of sugar beet at the plants.

At present, similar work is underway with JSC “SPK Taraz”, whose specialists provided a full package of documents on September 20 and five days later signed a framework agreement on financing. The total amount of the open limit of financing is over 10 billion tenge, the ultimate borrower - Merken Sugar LLP, located in the village of Oytal Oytal rural district of Merken district of Zhambyl region.
The financing will allow the factories to accept up to 900 thousand tons of domestic sugar beet from farmers.

“These measures of state support by the corporation were taken in a prompt manner, as sugar belongs to socially important food products. These measures are aimed at reducing dependence on imported sugar and contribute to covering domestic demand with domestic products. In addition, they allow to support the agrarians of Zhambyl region and Zhetysu region, which specialize in the cultivation of sugar beet”, - said the Chairman of the Board of Agrarian Credit Corporation JSC Almat Ashirbekov.