FFSA has allocated 4.6 thousand loans under the Program for productive employment

“Fund for financial support of agriculture” JSC, the company in the structure of “KazAgro” Holding” JSC, participates in the implementation of the Program for development of productive employment and mass entrepreneurship for 2017-2021 (hereinafter – the Program) as a regional authorized organization. In 2017 for microlending of rural business within the Program KZT 27 billion were allocated including through the Fund KZT 16.6 billion were directed.

In whole, in the past year the Fund under the Program granted 4 638 microloans, the participants of the Program are unemployed, self-employed citizens, agricultural cooperatives and their members – subjects of micro- and small business. Microloans were given on the terms of urgency, repayment, interest payment and designated use.

  • The loans were given to open microbusiness and expand the existing business, - replied the Deputy Chairman of the Executive board of “Fund for financial support of agriculture” JSC Duman Ospanov. – the term of microloan – up to 77 years. Maximum sum is up to 8 thousand of monthly calculated indexes, the fee rate is not more than 6% per annum. The grace period was approved to repay principal and interest – not more than one third of a microloan term.

The obligatory condition is training of business basis, at business expansion – creation of new constant jobs. Thus, more than 1.5 thousand projects financed by the Fund under the Program are implemented by participants, trained under the program “Bastau Business”.

Besides, in the past year, microlending of rural business was implemented from the funds repaid by the borrowers who had received financing in 2015-2016 under the program “Employment road map – 2020”. Thus, 798 projects for amount of KZT 2.01 billion were financed from the repaid funds. And the number of projects within the Program of food employment and Employment road map-2020 in 2017 amounted to 5436, financing sum – KZT 18.6 billion.

By intended use within the Program, the Fund for financial support of agriculture financed:

  • 2392 projects for KZT 9.1 billion for Igilik product – for lending of purchasing and breeding of agricultural animals and poultry;
  • 1537 projects for KZT 4 billion under Bereke product – for establishment of family feedlots;
  • 663 projects for KZT 3.3 billion under Kasipker product – for development of agricultural and non-agricultural business;
  • 41 projects for KZT 165 billion under loan product Yeginzhay – for spring field and harvesting works;
  • 5 projects for KZT 31 million under loan product Yntymak – for development of organization involved in procurement and sale of meat, milk, fruit and vegetable products and fodder.

In the current year within the Program for development of productive employment and mass entrepreneurship it is planning to give microlending for KZT 18 billion.

Within “KazAgro” National management holding” JSC there are three subsidiary companies are involved in implementation of the Program for development of productive employment and mass entrepreneurship – “Fund for financial support of agriculture” JSC, “Agrarian credit corporation” JSC in part of lending for business development in village through funding credit cooperatives and microfinancial organizations, “KazAgroGarant” JSC – in part of guaranteeing loans, microloans in rural areas and small towns, which are aimed at startups by first-time entrepreneurs, as well as for expansion of existing business.

At present, the guaranteeing instrument has been used by 187 farmers, and 44% of who received guarantees are first-time entrepreneurs. Share of first-time entrepreneurs – from 1 to 3 years of activity, amounts to 24%. Share of existing entrepreneurs who addressed for guarantees – 32%.

The total sum of given guarantees at present is about KZT 981 million. Average sum of loan under guarantee is KZT 6.6 million, average guarantee sum is KZT 4.0 million.