Six thousand projects received funding in 2018 from ACC

Founded in 2001, Agricultural Credit Corporation JSC is part of the group of companies of the National Management Holding “KazAgro” and over the years has carried out large-scale work in 16 branches and one representative office in all regions of Kazakhstan.

The main focus of the company’s activities is the development of the republic’s agro-industrial complex through lending programs.

Support is provided in priority areas of agricultural production, defined within the framework of the State Program for the Development of the Agro-Industrial Complex for 2017–2021, approved by the Decree of the President of the Republic of Kazakhstan dated February 14, 2017.

Since 2001, 200 credit partnerships have been created in Kazakhstan, uniting about 19 thousand agricultural producers - agribusinessmen. Over 17 years, more than 40 thousand loans worth more than 310 billion tenge were provided through credit partnerships.

Over the 10 months of this year, thanks to the Corporation’s financing, 5,928 projects worth 174.5 billion tenge received a start in life. The increase in the amount from last year's annual indicators of the company was 14 percent.

Borrowers, including end borrowers of financial institutions, received loans totaling 174.5 billion tenge. The volume of financing through financial institutions amounted to 47 percent of the total allocated funds, which in total reaches  82.3 billion tenge .

The main part, the Corporation notes, falls on the system of credit partnerships and amounts to 70 percent, in total terms this is 57.6 billion tenge. This is 106 percent more than the amount of funding in 2017.

According to industry experts, the positive effect of the credit partnership system was achieved due to several factors. The first is  an extensive network of credit partnerships  and their close proximity to places of agricultural production. 200 credit partnerships receiving financing through the Corporation are located in 157 rural areas and 14 regions.

District coverage is 98 percent. The system includes more than 19 thousand participants, and the loan portfolio as of November 1, 2018 amounted to 129.2 billion tenge.

The second factor is  the management system . The Corporation's strategy is based on simplifying existing procedures and reducing the time required for consideration of applications. The Corporation delegates powers to the branches and credit partnerships themselves as much as possible. In accordance with the rating of credit partnerships,  limits on powers for independent review of projects are established in the amount of up to 50 million tenge . For credit partnerships with a high rating, self-financing limits are limited only by the size of the credit line.

Another success factor is  the Corporation’s loyal collateral policy for financed loans . The system of credit partnerships makes it possible to provide property located in rural areas, agricultural machinery and biological assets as collateral for loans.

As a result of well-established work based on the principle of “one for all and all for one,” a low level of overdue loan debt (over 90 days) was achieved, which amounted to 4.6 percent in November.

Every year the company provides loans for the creation and development of agribusiness. This year, 60 billion tenge have been allocated for spring field and harvesting work.

The Corporation  also  finances the purchase of agricultural machinery and equipment , breeding of cattle / small cattle for meat production, purchase of breeding cattle breeding stock for dairy production, agricultural machinery / equipment for a dairy farm, production and processing of agricultural products, investment and greenhouse projects, intensive gardens, feedlots, meat processing plants complexes and other types of activities in the agro-industrial complex.

The Corporation actively participates in the beef cattle breeding program. Over the 10 months of this year, the purchase of 57,852 heads of small cattle and 21,025 heads of cattle was financed. Of these, 6,806 heads of cattle were actually imported; by the end of the year, it is planned to import 18,087 heads of cattle.

The Corporation takes an active part in the implementation of the state program “Development of productive employment and mass entrepreneurship for 2017–2021 “Enbek”.

The Corporation also makes a contribution to the state’s gender policy. In just 10 months of this year , 718 women entrepreneurs were financed, the volume of financing amounted to 35.7 billion tenge , which is 20.4 percent of the total volume.

The implementation of state and industry lending programs made it possible not only to preserve existing jobs, but also contributed to the creation of new jobs.

Thus, JSC "Agrarian Credit Corporation" fully promotes the sustainable development of the country's agro-industrial complex through an accessible and effective financing system by involving private financial institutions and increasing the competencies of agribusiness entities.

ASTANA

Author:  Nazgul Abzhekenova