DEAR PARTNERS AND COLLEAGUES!
In your hands, you are holding the Annual Report of "KazAgro" Holding" JSC for 2017. This document is a concentrated expression of everything that our organization has been working on over the past year. Behind the given information, figures, diagrams, an inquisitive reader will easily catch the energy of the Holding's working days, our joy from the victories and the bitterness of failure.
Following the results of 2017, the loan portfolio of "KazAgro" Holding" JSC increased to 622 billion KZT, the number of borrowers increased to 58 thousand. This is about one third of the country's agricultural producers. The main sources of AIC financing are the Company's own and attracted funds – the cumulative share of which amounted to 60%.
Over the last year "KazAgro" group of companies has provided about 22,000 loans, and the coverage of AIC's subjects with the Holding's programs increased significantly. The average loan amounted to 11 million KZT. This allowed to provide employment and create new jobs for 52 thousand people.
Within the work on increasing the availability of financial services for rural businesses and in order to involve private financial institutions in agricultural sector lending the Holding is increasing its funding levels. In two years, the volume of loans through funding credit cooperatives, microfinance organizations, second-tier banks and leasing companies increased from 21% to almost 37%.
In general, in 2017, the Holding has allocated 267 billion KZT to support domestic agricultural producers, of which 92% - for AIC entities lending.
In accordance with assigned mission the Holding participated in implementation of such strategic and industrial programs as the State Program for the Development of AIC of the Republic of Kazakhstan for 2017-2021; the Program for the Development of productive employment and mass entrepreneurship for 2017-2021; the State Program of industrial-innovative development for 2015-2019.
Unfortunately, in the course of industry financing, the Holding was exposed to a negative influence of a number of external factors. This is an unstable economic state in 2017 of certain second-tier banks, as well as the consequences of national currency depreciation. The information on losses that arose as a result of these reasons is also reflected in the Annual Report.
In conclusion, I would like to express my sincere gratitude to our agricultural producers, partners, shareholders, employees of the Holding and all its subsidiaries for their joint work, for creative work for the development of agricultural sector of the country and entire Republic of Kazakhstan! I am confident that we will fully solve all tasks assigned to the industry. Health and peace to every home!
Sincerely, Chairman of Executive Board of
"KazAgro" Holding" JSC