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Dear Olzhas Abaevich, colleagues!
To achieve the Government’s target of increasing GDP growth to 7% in 2025, the Holding plans to allocate about 8 trillion KZT to support entrepreneurship, develop housing construction, and implement key national and investment projects, with a further increase in financing to 10 trillion KZT by 2027. For these purposes, the Holding requires capitalization in the amount of 1 trillion KZT annually.
In 2024, the Holding’s total contribution to supporting sectors of the economy amounted to about 4 trillion KZT.
Business stimulation will be carried out by equalizing the interest rate at the level of 12.6% (blending capital and market funds) for end borrowers.
The main objectives of this initiative are:
to offer enterprises of the real sector a fair interest rate without distorting the financing market, including discontinuing the practice of “cannibalism” (duplication of products and migration of projects between support operators) among financing institutions and interest rate “arbitrage” (different rates and unequal access for market participants), as confirmed by observations of the Supreme Audit Chamber of the Republic of Kazakhstan;
to reduce the burden on the state budget with a gradual transition away from the practice of subsidization.
Providing up to 8 trillion KZT of support to the economy in 2025 (taking into account the effect of domestic value content in project financing) will enable the Holding’s projects to contribute up to an additional 1.3% to GDP growth (GDP growth forecast for 2025 – 6.5%, according to the Ministry of National Economy).
Creation of a Guarantee Fund for large businesses
To involve the liquidity of second-tier banks in financing the economy, primarily in large investment projects, it is proposed to actively apply guarantee mechanisms backed by a state guarantee with mandatory disclosure in accordance with budget processes.
The mechanism implies that the state assumes part of the financial risks for loans or investments directed to large projects. The guarantee will increase the attractiveness and accessibility of financing for private and public participants.
For these purposes, a special guarantee fund for large business projects with a value of over 7 billion KZT will be created under the Holding. This fund will become an effective instrument for addressing the issue of sufficient collateral for large and strategically important projects.
The preliminary mechanism of operation of the guarantee fund is as follows.
The project initiator must ensure own participation of at least 20% of the project cost. If necessary, Qazaqstan Investment Corporation will focus on developing private equity by providing entrepreneurs with equity financing opportunities and acting as a full partner in project implementation in line with state policy and requirements for business investment obligations.
The remaining 80% of the project cost will be financed through loans from second-tier banks and the Development Bank of Kazakhstan. At the same time, the Holding’s guarantee coverage for creditors will amount to up to 30% of the financing amount.
For second-tier banks, this will increase lending volumes and reduce credit risks in cases of insufficient collateral.
Guarantees are planned to be provided in the manufacturing sector. The irrevocability of guarantees is intended to increase banks’ interest, while the paid nature of guarantees for business entities will strengthen entrepreneurs’ responsibility.
Creation of a Guarantee Fund on the basis of Damu
In line with the instruction of the Head of State announced at a recent Government meeting, a Guarantee Fund for small and medium-sized businesses is planned to be launched this year.
The capital of the Guarantee Fund will be formed through the participation of the Damu Entrepreneurship Development Fund, mandatory annual contributions from second-tier banks, as well as funds from the state, large companies, and other interested organizations.
Within the framework of establishing the Guarantee Fund, the functions of the Damu Fund will be supplemented with new tasks: the product line for guarantees will be expanded, the size of guarantees will be increased, and the list of economic sectors eligible for guarantees will be broadened. Under the new products, guarantees are planned to be issued on the principles of irrevocability and unconditionality.
The creation of the Guarantee Fund will reduce the burden on the state budget by attracting funds from additional sources of financing, expand the coverage of business entities supported through guarantees, and effectively involve bank liquidity in economic circulation.
The launch of the guarantee fund will make it possible to increase the guarantee portfolio to 1 trillion KZT by 2027 (+148% compared to 2024) and support more than 50 thousand projects annually, which is five times higher than the 2024 indicator. At the same time, priority will be given to projects that reduce imported inflation in the country.
Participation of the Holding in the implementation of the National Project “Modernization of the Energy and Utilities Sectors”
Within the framework of the National Project “Modernization of the Energy and Utilities Sectors” for 2025–2029, the Holding has been designated as the Financial Operator.
The Holding will apply financing instruments of the Development Bank of Kazakhstan, second-tier banks, as well as bond loans through Kazakhstan Housing Company and other market participants to support the activities of natural monopoly entities. Budget lending is also envisaged, including the purchase by the Financial Operator of bonds of natural monopoly entities from the private sector, as well as financing of natural monopoly entities (coal-based generation) through leasing financing via the Industrial Development Fund. In addition, Kazakhstan Housing Company will act as an agent for providing subsidies to natural monopoly entities.
To implement the objectives of the National Project, the Holding plans to finance projects of natural monopoly entities in the amount of 4.7 trillion KZT over a five-year period. In 2025, the financing requirement amounts to 283 billion KZT based on the need to address critical infrastructure gaps.
Overall, the total value of the Holding’s prospective projects currently exceeds 25 trillion KZT, with the requested financing amounting to up to 10 trillion KZT.
Of this amount, investment projects account for 8.4 trillion KZT and working capital support programs for 1.6 trillion KZT, of which 700 billion KZT for the agro-industrial complex will remain within the subsidized rate, while the rest will be financed at market rates.
Within the structure of investment projects, the share of projects is distributed as follows: transport and logistics – 25.5% (2.1 trillion KZT), metallurgy – 22.9% (1.9 trillion KZT), chemical industry – 14.1% (1.2 trillion KZT), energy – 11% (0.9 trillion KZT), oil refining – 9.3% (0.8 trillion KZT), agro-industrial complex – 8.1% (0.7 trillion KZT).
This slide presents a sectoral breakdown of the Holding’s large investment projects valued at more than 7 billion KZT, which may be considered by the Guarantee Fund for large businesses.
The preliminary financing amount for such investment projects that may be guaranteed by the Holding totals 6 trillion KZT.
In accordance with the instruction of the Head of State, the volume of concessional lending for spring field and harvesting works through Agrarian Credit Corporation will reach 700 billion KZT, of which 202 billion KZT has already been issued. Of this amount, 100 billion KZT was allocated in advance in December last year. In the absence of sufficient collateral, farmers may use guarantees from the Damu Fund.
To accelerate the renewal of the machinery and tractor fleet, KazAgroFinance has launched a concessional leasing program for domestically produced agricultural machinery at an annual rate of 5%.
In addition, financing of investment projects in the agro-industrial complex will continue with priority given to reducing import dependence and stabilizing prices. For this purpose, projects for the processing of agricultural products and production of food products with a focus on socially significant goods will be financed, as well as the introduction of irrigation systems, production of vegetables in greenhouses, development of production and marketing infrastructure, and support for feed production.
Within the framework of the export strategy, instruments for insurance, reinsurance, and guarantees for domestic producers are being expanded. An important task is entering new markets and providing comprehensive solutions for Kazakhstan’s exports.
In this regard, the Holding is launching a trade fund with a target size of $200–500 million and forming a pool of export-oriented projects, including the development of poultry farming enterprises and crop production.
Key export directions:
Thank you for your attention!
