KazAgroFinance JSC: Leasing of the Belorussian Agricultural Machinery Becomes More Profitable
Purchase of the Belorussian agricultural machinery and equipment on leasing basis becomes more profitable for the Kazakhstani agrarians.
Within the current Program 'Made in Belarus’ being implemented by KazAgroFinance JSC, the Government of the Republic of Belarus reimburses for a part of interest rate on financial leasing contracts for the agricultural machinery and equipment made in Belarus. The part of leasing payments to be reimbursed is 2/3 of refinancing rate set in the Republic of Kazakhstan.
Taking into consideration that starting April 1, 2017 the official refinancing rate has been equated to the reference rate, which is 11.0%, while the subsidies by the Government of the Republic of Belarus for the Kazakhstani agrarians will be 7.33%. The previous reimbursement was 3.67%.
Let us recall that since the end of last year KazAgroFinance JSC had reduced the interest rate to 17.3% from 19% p.a. Thus, the final rate for the consumers under the Program ‘Made in Belarus’ will be about 10%. At that, the possibility of obtaining the Kazakhstani subsidies should not be excluded.
The Program ‘Made in Belarus’ was launched in May of 2016 within the framework of the Agreement between KazAgroFinance JSC, a company within the National Holding ‘KazAgro’, and the Government of the Republic of Belarus. The leasing term is not more than five years. The interest and principal leasing repayments are made on a quarterly basis.
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