The implementation plan of the priority areas for their financing by the group of companies of "KazAgro" Holding" JSC within the State program for the development of agricultural sector of the Republic of Kazakhstan for 2017–2021 and the Program for the development of payable employment and mass entrepreneurship for 2017-2021.
I) In accordance with the State program for the development of agricultural sector of the Republic of Kazakhstan for 2017–2021, approved by the Decree of the President of the Republic of Kazakhstan No. 420 dated February 14, 2017, by the Board of directors of "KazAgro" Holding" JSC (hereinafter referred to as the Holding) dated July 5, 2017 the consolidation of indicators performance is approved within the Implementation plan of the priority areas for their financing by subsidiary companies, according to the following principles:
1. The Holding plans to conduct events in order to mobilize resources for the implementation of priority areas within the State program for the development of agricultural sector (hereinafter referred to as AIC) of the Republic of Kazakhstan for 2017-2021;
2. The consolidation of indications in a number of priority areas is necessary to ensure maximum concentration of both financial and labor resources of the Holding;
3. The Holding will finance within the priority areas, including by funding financial institutions (credit cooperatives, microlenders, regulated banks (hereinafter referred to as RB) and leasing companies);
The following directions have been assigned to the Holding:
- financing of cooperatives, personal subsidiary farms, peasant and private farms, individual entrepreneurs for the production and processing of agricultural products;
- financing of investment projects for the creation of new ones, modernization, expansion of existing enterprises;
- financing of small and medium businesses.
The financing of indicative factors in 2019 is planned to be carried out at the expense of concessional funds (RB, NF of RK, and funds presented for the increase of the authorized capital), and funds raised by the Holding and subsidiary companies at the capital markets.
ІІ) In order to implement the Program for the development of payable employment and mass entrepreneurship for 2017-2021 (hereinafter referred to as the Program) by the order of the Deputy Prime Minister of the Republic of Kazakhstan – the Minister of Agriculture - No. 109 dated March 10, 2017, it has been approved as follows:
1) The rules of crediting and microcrediting in small cities and rural settlements, which are guided by "Agrarian Credit Corporation" JSC (hereinafter referred to as the Corporation) and "Fund for financial support for agriculture" JSC (hereinafter referred to as the Fund):
The Fund implements the Program through Igіlіk, Yeginzhay, Kasipker, Yntymak, Sybaga credit programs (the credit conditions are available on the website of the Fund). The development of additional internal regulatory documents (hereinafter referred to as IRD) is not required.
The Corporation implements the Program through Isker credit program by means of the funding of credit cooperatives and microlenders for the subsequent lending to end borrowers (the credit conditions are available on the website of the Corporation). The development of additional IRD is not required.
2) Guarantee rules for microcredits issued by microlenders and credit cooperatives in rural areas and small cities, which are guided by "KazAgroGarant" JSC (hereinafter referred to as KAG):
KAG, in turn, has developed and approved the procedures and guidance of "KazAgroGarant" JSC on microcredits guaranteeing (approved by the decision of KAG Board dated April 17, 2017), which regulates the procedure for providing guarantees; Regulations on the Committee for microcredits/ credits guaranteeing; as well as the Method of determining the financial situation (approved by the decision of KAG Board dated November 01, 2017).
In 2019, the following indicatives were identified as part of the Program implementation:
- A number of microcredits issued in rural areas is 12,000 units;
- A number of guarantees issued in rural areas is 320 units;
- A share of start-up projects funded in rural areas is 20% of the allocated amount.
If you have questions regarding the funding programs, please contact the following person: Nurmagambetov Berik Rakhimzhanovich, 8(7172)705-643, firstname.lastname@example.org.