Start of sowing campaign in the southern regions of Kazakhstan
Under the line of “KazAgro” Holding through “Agrarian credit corporation” JSC, KZT 60 billion were allocated from the republican budget for spring field and harvesting works in 2018, said the Chairman of the Executive Board of “Agrarian credit corporation” JSC Narmukhan Sarybayev during the offsite press conference of the Service of central communications in the South-Kazakhstan region.
“… by the end of January we started the financing with preliminary processing of application for lending from borrowers which we had received in December. The approval of applications from the Corporation in such short terms and rapid in financing allows farmers to purchase seeds, herbicides, spare parts and other goods and services necessary for sowing at good purchase price” told Narmukhan Sarybayev in his speech.
The subsidiary company of “KazAgro” Holding – “Agrarian credit corporation” implements lending of agricultural producers by three channels: Credit cooperatives (CC), second-tier banks (STB) including microfinancial organizations (MFO) and direct lending. Lending term is till December 2018. Fee rate for final borrowers amounts to up to 6% per annum.
Preliminary financing was supposed to implement with use of thee financial instruments:
- CC – KZT 10.0 billion, in 2017 – KZT 8.6 billion,
- STB – KZT 22.0 billion, in 2017 – KZT 21.3 billion,
- Direct lending – KZT 28.0 billion, in 2017 – KZT 30.0 billion.
As of 4 April 2018 the Corporation received 1 776 applications for consideration from agricultural producers for total sum of KZT 59 billion for sowing of 2.6 million ha, 441 applications of agricultural producers were financed for total sum of KZT 28 billion for processing of 1.4 million ha. Also 129 applications of agricultural producers were approved for sum of KZT 12 billion.
161 applications from agricultural producers are under consideration for total sum of KZT 6.2 billion. It should be noted that there is a significant growth dynamics – in the past year as of the same period 1460 applications were received from agricultural producers. The significant growth of applications is observed in the system of financing through CC – number of applications has been grown more than twice (for the same period of the past year 294 applications from agricultural producers through CC).
By financial instruments with account of applications collecting the total pool of applications is the following:
- 647 final borrowers of CC for KZT 10.7 billion;
- 879 final borrowers of MFO for KZT 1.5 billion;
- Direct borrowers – 213 for KZT 34.4 billion;
- STB – 34 for KZT 12.6 billion.
As for priority of crops and structure of planted areas, the majority share according to applications from agricultural producers in this year is taken by wheat, barley, flax, rape, and sunflower.
Through the programs of “KazAgroFinance” JSC, a company in the structure of “KazAgro” Holding, as of 2 April 2018, 775 applications were received to obtain agricultural machinery on lease for spring field works. Today the agreements of financial leasing were concluded for 370 units of machinery.
Tractors are in demand with Kazakhstan farmers, total number of application for their leasing achieved 469 units. It should be noted that for 237 applications for tractors acquisition the financial lease agreements are already concluded.
To support Kazakhstani agricultural producers “KazAgroFinance” JSC launches new programs “Reliable Farmer” – current and previously financed clients of “KazAgroFinance” JSC may obtain agricultural machinery and equipment on lease without advanced payment and “Own feed” – purchasing of forage procurement and forage harvesting machinery for up to 10 years with the reduced advance payment in 10%.