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Interim results of the progress of VPiUR financing - 2019

The Agrarian Credit Corporation, being a subsidiary of the national management holding KazAgro, implements state policy to ensure the availability of financial support measures aimed at increasing labor productivity in the agro-industrial complex and the growth of gross output of agricultural products.

Since the beginning of 2019,  through all  lending programs implemented by the Corporation, applications  from 2,281 agricultural enterprises have been accepted  for a total amount of  75.6 billion  tenge, including:

  • Applications  from 2,216 agricultural enterprises  were approved  for a total amount of  72.7 billion  tenge, incl. 2,181 agricultural enterprises were credited   for a total amount of  66.2  billion  tenge,  the balance of the undisbursed  amount  was 6.5 billion  tenge ;
  •  the application of  65  agricultural enterprises  in the amount of  3.0  billion  tenge is being considered .

Every year, 60 billion tenge are allocated from the Republican budget to finance spring field work. Acceptance of applications began  in December last year . Approval of applications by the Corporation in a short time and prompt financing allows farmers to purchase seeds, herbicides, spare parts and other goods and services necessary for sowing at the optimal purchase price. 

The Corporation provides lending to agricultural producers through the following channels:  Credit partnerships, microfinance organizations (including the regional investment center) - with  a remuneration rate for final borrowers of  up to 7%  per annum. When lending to STBs, the interest rate for final borrowers is  6%  per annum.  For direct lending, it is necessary to provide a guarantee from the second-tier bank;  the interest rate for borrowers is  3%  per annum The loan period is until December 1, 2019.

In total, 2,012  applications  were received  from  agricultural producers  in the amount of  60 billion  tenge for sowing  3.126 million hectares , of which through:

  • direct lending   -  77  agricultural enterprises  in the amount of  17.6 billion  tenge;
  • funding for CT  –  988 agricultural production  facilities  for  22.2 billion  tenge  ;
  • funding of microfinance organizations  –  843 agricultural enterprises  for   1.7 billion  tenge;
  • funding of RIC  –  19 agricultural enterprises  for  0.6 billion  tenge;
  • funding of second-tier banks  85  agricultural enterprises  for  18.0 billion  tenge  .

Including  applications  from 1,947 agricultural enterprises  were approved  for a total amount of  57.1 billion  tenge, incl. 1,912 agricultural enterprises were financed  for a total amount of  55.9  billion  tenge through the following sales channels:  

  1. Direct lending  –  72  agricultural enterprises  in the amount of  15.6  billion  tenge;
  2. through KT funding  –  893 agricultural enterprises  in the amount of  20.1  billion  tenge;
  3. through funding of microfinance organizations -  843  agricultural enterprises  in the amount of  1.7  billion  tenge;
  4. through funding of RIC -  19  agricultural enterprises  in the amount of  0.6  billion  tenge;
  5. through funding of STBs  –  85  agricultural enterprises  in the amount of  18.0 billion tenge  ,  incl.,  the share of funding for STBs is as follows:
  • Tengri Bank JSC - 2.7 billion tenge ;
  • JSC "BankCenterCredit" - 2.6 billion tenge;
  • JSC NurBank - 1.9 billion tenge;
  • JSC "Halyk Bank of Kazakhstan" - 9.3 billion tenge;
  • ATFBank JSC - 1.5 billion tenge .

There are  65  applications  from agricultural enterprises  at the stage of consideration  for a total amount of  2.95 billion  tenge.

The main share of financing in the amount of  45.2 billion  tenge  ( 80.8 %)  fell on the grain-growing regions of the country  (Akmola - 17.4 billion, North Kazakhstan region - 15.6 billion and Kostanay - 12.1 billion tenge).

Due to other ongoing lending programs, applications  from 269 agricultural enterprises were considered  for a total amount of  15.6 billion  tenge, of which:

  • applications  from 269 agricultural enterprises  were approved  for a total amount of  15.6 billion  tenge, incl. 269 ​​agricultural enterprises were financed   for a total amount of  10.2  billion  tenge .
  • the balance of  the undisbursed amount  is 5.4  billion tenge.

The main crops in demand are:  wheat, fodder and oilseeds.


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