Yerzhan Yelekeyev, Managing Director of Baiterek Holding, summed up the results of 2022 in a new interview.
– Yerzhan Irakovich, the year 2022 has just ended. Can you tell us how it ended for Baiterek Holding? What results can be summed up?
– Before we discuss the year's results, I'd like to share my personal impressions of working at Baiterek Holding. I joined the team three months ago after working in various private and international organizations. Baiterek Holding is a unique financial institution responsible for developing priority sectors of the economy and making housing more affordable for our citizens through mortgage lending and other financial instruments. Many countries have similar state institutions that implement government programs and projects, among others.
Speaking about 2022 results, the year was productive, and we accomplished a lot. Baiterek’s assets doubled compared to 2020, reaching 13 trillion tenge in 2022. Additionally, our net profit broke the historical record for the entire ten-year history of our holding, reaching 350 billion tenge, which is five times more than in 2020 or three times more than in 2021.
– What did Baiterek Holding do to support SMEs?
– We realize that SMEs can become a driver of our economy, and we are actively helping them. The share of Baiterek Holding in supporting SMEs was 15% in 2022, and we supported over 50 thousand projects. The primary share of supported projects is in the manufacturing sector.
We understand that preferential state funds are limited, and we cannot cover all entrepreneurs. To address this issue, we reduced the “average check” from 48.9 million tenge to 40.5 million tenge per borrower, enabling us to cover more SMEs than in the previous year.
I hope that the Holding’s assistance will help our micro and small businesses grow into medium-sized businesses and medium-sized businesses to move into the ranks of large entrepreneurs, thereby strengthening our economy.
– What is being done to support big business? Do they need the help of the state?
– I believe that big businesses need help if they invest in new technologies, create unique production facilities, and produce a great social and economic effect. These businesses can produce goods with high added value and compete outside of our country.
In 2022, the Holding supported 238 projects for a total of 685 billion tenge. Our subsidiaries, the Development Bank of Kazakhstan and the Industrial Development Fund, contributed more than 100 billion tenge to the country's budget, and the large projects put into operation last year created 2.5 thousand qualified jobs.
– Do you help Kazakhstani businesses export their products to foreign countries? What are the achievements in this direction?
– Yes, our subsidiary KazakhExport protects our exporters and helps them raise the country's export potential. Our goal is to develop the non-primary sector. Thus, the share of support for Baiterek Holding in the non-primary sector amounted to 10% for the first 11 months of 2022, which is almost 2 times more than for the same period in 2021. The supported exporters sold their products and services totaling nearly $24 billion last year.
– Can you tell us more about any projects that you are proud of?
– We have financed unique projects that have no analogues in our country. For example, a plant that produces budget car tires in the city of Saran, Karaganda region. The plant plans to produce up to 3.5 million tires per year, which will not only satisfy domestic demand for budget tires but also export them to neighboring countries.
This plant created over 1,000 jobs, and it will give a good impetus to the development of the town of Saran, which has a population of 43 thousand people. Now we see the town slowly reviving after being depressed for many years.
In addition to this project, Baiterek Holding plans to fund a small-scale assembly of cars of the largest Chinese brands Cherry, Changhan, and Haval in 2023. The investor for this project is Astana-Motors. The plant is expected to produce 90,000 vehicles per year. The project aims not only to export Kazakh-made cars to other countries but also to stimulate the development of clusters. Dozens and hundreds of small and medium-sized enterprises producing various products for the automotive industry are expected to be built around the plant, providing employment opportunities and further boosting the local economy.
Photos of KamaTyresKz LLP in Saran, Karaganda region.