FINANCING OF AGRICULTURAL PRODUCTION AND INDUSTRY, PROCESSING AGRICULTURAL PRODUCTS THROUGH THE SYSTEM OF CREDIT SOCIETIES

Target group: New and existing APC

 

Designated purpose: Financing the APC for further financing of members of APC for fixed asset acquisition (including those for  modernization of the production), construction and installation work ( building of new constructions, reconstruction) and working capital financing.

 

Currency:  tenge

 

Loan amount:  From 1 000 000 tenge to 25% of the net equity of the Corporation

 

Loan type: credit line

 

Loan due date: up to 108 months

 

Tranche period:

Set depending on the term of the tranche borrower CS, with:

  • Fixed asset acquisition  and construction and installation work – up to 108 months;
  • working capital financing, including water distributing point, except dropping of perennial grass  – up to 24 months;
  • working capital financing, including dropping of perennial grass  – up to 60 months.

Interest rate: 4% annual interest (annual effective rate of return  – 4% annual interest) 

Payment pattern of principal debt and reward: every month, quarterly, semi-annually, annually, with possibility of partial/full advanced repayment

 

Gestation period of payment of principal debt:

  • working capital financing, including water distributing point, except dropping of perennial grass  – up to 12 months as from receipt of tranche;
  • working capital financing, including water distributing point – up to 18 months as from receipt of tranche;
  • working capital financing, including dropping of perennial grass  – up to 24 months;
  • fixed asset acquisition  and construction and installation work – no longer than 24 months.

 

Charge: According to charge policy

 

Basic requirements for the APC:

  • At least 20 members of agricultural commodity producers;
  • absence of overdue payables on taxes and other compulsory payments to the budget dated to the apply/pendency of application;
  • absence of overdue debt to the regulated banks, other financial institutions dated to the apply/pendency of application;
  • at least CS authorized capital 3 000 000 (three million) tenge.