About financing by “KazAgro” National holding of spring sowing and harvesting works 2017

For today for spring sowing and harvesting of 2017 the agricultural producers of 4 southern regions of Kazakhstan were financed for 8 billion tenge under the line of “KazAgro” National holding. The main financing source of spring sowing in the republic were the funds in 60 billion tenge allocated from the budget loan to subsidiary company of “KazAgro”, Agrarian credit corporation.
          In whole for the republic as of 17 July “KazAgro” has financed from all the sources 1257 application for 64.6 billion tenge including from budget loan – 774 applications for 55.6 billion tenge.
Among them for southern regions – 124 applications for 8 billion tenge including from budget loan 112 applications for 7.9 billion tenge:
South-Kazakhstan region – for 6.5 billion tenge
Kyzylorda region – for 808.1 million tenge
Almaty region – for 523.1 million tenge
Zhambyl region – for 137 million tenge
-structural subdivisions of the Agrarian credit corporation consider applications for 1.7 billion tenge, including for southern regions applications for 66.6 million tenge (Kyzylorda region).
We remind that in 2017 to the system of financing of spring sowing a range of changes were introduced, which aim is to expand access to financial assets for more agricultural producers. We talk about:
-direct financing of agricultural producers with submission of bank guarantee through branch network of “Agrarian credit corporation” JSC (ACC);
-funding of second-tier banks for further financing of agricultural cooperatives and agricultural producers.
-Funding of credit cooperatives (CC), microfinancial organizations (MFO).
In the current year lending rates were reduces, so the rate of “Agrarian credit corporation” at direct lending of agricultural producers comprises 2% per annum. Final rate for borrowers at lending through financial institutions is not more than 6% per annum (from ACC for STB – 2%, for CC, MFO – 3%).
           “Food contract corporation” NC” JSC (FCC) participates in support of spring sowing through forward purchasing of agricultural products, thereby providing agricultural producers with guaranteed sale of yield. At that the list of goods purchased by it is expanded. If earlier FCC purchased wheat and barley, the current year the farmers may deliver oil crops too (rape, flax, sunflower, soya).
          11 priority crops were determined, these are: oil crops (sunflower, rape, flax, soya) and barley, sugar beet, rice, corn for grain, cotton, oat, potato, which are financing primarily.
The granted lending funds for 1257 applications allow agricultural producers sow crops on area of 3.7 million ha. Including for southern regions 124 applications allow agricultural producers sow crops on area of 114.8 thousand ha including for priority crops – on 51.2 thousand ha (45%).
This year financing of spring sowing is continuing through agricultural cooperatives.
           Thus, in the current year 10 cooperatives were financed with 176 participants – agricultural producers for 8 billion tenge covering planted areas processing in 598.3 thousand ha.
Besides, within the line of “KazAgroFinance” JSC as of 14 July of the current year for purchasing of sowing agricultural machines 1230 agreements of financial leasing were concluded for sum of 17.7 billion tenge, 291 applications were approved from agricultural producers for 5.7 billion tenge, 267 applications from agricultural producers are under consideration for 9.1 billion tenge.