SUBSIDY

The interest rates are subsided within the Republican Budget Program ‘Targeted Current Transfers to Oblast Budgets, Budgets of Astana city and Almaty city for Subsiding of Interest Rates When Crediting, as well as Leasing for Purchase of Agricultural Livestock, Machinery and Technological Equipment'.

Subsiding Terms:

1. The subsidies are provided on:

1) Loan Agreement, for which the Subsidy Contract is signed;

2) Loan Agreement approved by the Commission's decision before implementation of the Rules – within the time limit and under the terms specified in the Commission's decision;

3) Loan Agreement approved by the Commission after implementation of these Rules for not more than 12 (twelve) months from the loan issue date.

2. The loan agreements in force at the time of consideration by the Commission are subject to subsidies.

3. The Loan Agreement approved by the Commission after implementation of these Rules is subsided, provided the following terms are complied with:

1) an agreement is made with the fixed nominal interest rate of not more than 19% (nineteen) p.a. in KZT and not more than 10% (ten) p.a. in foreign currency;

2) targeted purpose is to finance the working assets;

3) loan tenor is not more than 12 (twelve) months;

4) interest rate shall not be subsided under other governmental and/or budget programs;

5) source of financing for loan shall not be any budget funds and funds of the National Fund of the Republic of Kazakhstan;

6) there are not any outstanding liabilities on repayment of principal and interest rate as of the date of applying by the Borrower to the financial institution.

4. The subsidies are provided by reducing the interest rate by 7% (seven) p.a. in KZT and 5% (five) p.a. in foreign currency under the Loan Agreement approved by the Commission after implementation of these Rules.

5. The subsidies for the Loan Agreement approved before implementation of these Rules are provided at the percent of interest rate to be subsided, which is determined by the Commission's decision.

6. The Loan Agreement, on which the decision on termination of subsiding was made, shall not be allowed for recurring participation in the Subsidies Program.

7. Subsiding of interest rates on the Loan Agreement is combined with governmental support programs for guaranteeing and insuring the loans, subsiding for cheapening the cost when purchasing the fixed assets (including biological assets), partial reimbursement of expenses incurred by the agricultural sector entity upon investments aimed at creation of new or extension of operating production facilities.

8. To obtain the subsidies the financial institution or the Borrower shall submit to the state corporation for transfer to the working body the following documents:

1) Application for Subsidies (hereinafter referred to as "the Application") in form according to Appendix 1 to these Rules;

2) Certified by the financial institution copy of Loan Agreement entered into between the financial institution and the Borrower with Principal and Interest Repayment Schedule attached;

3) a draft renewed Repayment Schedule with calculations of parts of interest rate to be subsided or not be subsided in hard and electronic editable copy;

4) extract from the Borrower's loan account on loan obtaining (for second-tier banks) or document proving the loan transfer;

5) a Letter of Consent by the servicing bank to the Borrower's participation in Subsidies Program (upon submission of Application by the Borrower).

On Approval of Subsidizing Rules for Reimbursement of a Part of Expenses Incurred by the Agricultural Sector Entity Upon Investments No.48 dated February 1, 2017 (DOWNLOAD)