Food security and inflation reduction are important tasks for Kazakhstan. How does the Agrarian Credit Corporation help solve them?

JSC Agrarian Credit Corporation (ACC) was established in January 2001 to provide agricultural producers with access to preferential credit resources from the republican budget. In 2021, ACC was joined to the group of companies of JSC National Managing Holding Baiterek. 

Currently, in addition to direct lending to agribusiness entities and funding financial institutions, ACC performs the functions of microcredit, an operator in the field of insurance in the agro–industrial complex and the functions of an attorney (agent) under the program "With a diploma - to the village!". It also implements lending programs in priority areas of agricultural production development.

Niyaz Koshkimbayev, Managing Director of NUH Baiterek, told how this activity contributes to the food security of Kazakhstan.

– For what purpose was the Agrarian Credit Corporation joined to the Baiterek holding? Has this improved the work of supporting the villagers?

– There was an instruction from the head of state to reduce the quasi-public sector in order to optimize processes. The fact is that there were two structures – the Agrarian Credit Corporation and the Fund for Financial Support of Agriculture, and they practically duplicated each other, so it was logical to combine them.      

To date, this work has been completed, all borrowers have been combined into one database, and an audit has been conducted. Now any farmer can apply to the ACC on a one-stop-shop basis and receive all the services that the corporation provides. This is a matter of modern technology, ACC pays great attention to the IT sector. We have developed a mobile application so that people can apply via a cell phone. 

– What loan programs are offered to farmers?

– There are several of them. For example, on March 1 of this year, we launched a microcredit program for young people. Villagers from 21 to 35 years old can receive up to 5 million tenge at 2.5% per annum for a period of 5-7 years. The administrator of this program is the Ministry of Labor and Social Protection, for this year it has allocated 29 billion tenge per year. The ACC acts as an agent here, collects applications and submits them to the local executive bodies for consideration, and they make the final decision. 

– The conditions are excellent, but is it easy to get these funds?

– Anyone can get such a micro-loan. Previously, it was necessary to collect a bunch of certificates, now you need at least an identity card. We see everything else through integration with government databases. In addition, of course, some kind of minimal business plan is needed so that a person understands how and on what he will spend this money for the development of his farm. The ACC accepts the application and looks at what collateral the potential borrower has.

– So you still need to provide collateral for a loan?

- of course. This gives the borrower a sense of responsibility, an understanding that the money will have to be returned to the state when the economy gets back on its feet. The advantage of ACC over banks is not only in low interest rates, but also in the fact that the corporation works with collateral in rural areas – it can be land, buildings, bio–assets - the same cattle.  No bank will take a horse as collateral. In addition, you do not necessarily need to buy high-breed cattle here, you can buy a cow from a neighbor and in a few years you will have your own herd.

– Is it possible to do without the decision of the Akimat commission?

– There is a similar program "Isker", here the decision is made by the ACC, without local executive bodies. But already at 6% per annum. Applications can also be submitted online.

– What other programs are working to support the villagers?

– There is a subsidy program – it is within the competence of the Ministry of Agriculture, but we also participate in it. Of course, there are problems there too. I recently visited Aktobe, met with farmers, and they raised the very topical issue of subsidizing the interest rate of remuneration. This is also a problem in other regions: due to delays in reviewing applications, farmers sometimes receive money late. So they ask that the two financial institutions settle this issue themselves, without their participation and the need for any additional papers. After all, the process of submitting applications and reviewing them takes time. In fact, it is technically possible to remove these bureaucratic delays, and we are working on this together with the Ministry of Agriculture.

As for other programs, we can mention the Kendal program for financing spring field, sowing and harvesting operations. It has been successfully operating for more than 10 years. Moreover, funding increases annually. If 70 billion tenge was allocated for it in 2021, then from 2022 it will be twice as much, 140 billion tenge.

– Is there enough money, or is there a need to increase this amount?

– There is a need. Everything is getting more expensive, spending rates per hectare are increasing. At the same time, we are trying to attract new borrowers. Pay more attention to novice farmers. In any case, there is support from the state, and it is very good.

– We talked a lot about microcredit today. But after all, large projects also need support.

– Yes, and the ACC has an Agribusiness program – agro-industrial complex projects up to 5 billion tenge are considered here: this is the construction of dairy farms, poultry farms, greenhouses, feedlots, agricultural processing plants. Over the past year, we have introduced 25 new investment projects, this year we plan about 21.

– For sure, many people come to you with requests to finance various enterprises. Do you have priorities when choosing projects?    

– Of course. Now the main direction is vegetable storages of a new type, as well as processing of products. Much attention is now being paid to food security. Even within the framework of spring field work, we try to finance, we give for wheat, potatoes, onions, beets.

In other words, we finance those areas that directly affect food safety and inflation – the cultivation of wheat, potatoes, onions, sugar beet. So that we do not depend on the supply of strategically important products.

And in this regard, the activities of the ACC are very important – it is in fact the only institution that finances the agro-industrial complex and helps the villagers to develop their production, even the smallest. The more successful farmers there are, the better we will all live.

https://informburo.kz/special/niyaz-koskimbaev-upravlyayushhii-direktor-nux-baiterek-cem-bolse-budet...