In Kazakhstan, financing of this year’s spring field and harvesting works has been completed. Baiterek Holding has done it through its subsidiary – Agrarian Credit Corporation (ACC).
This year, budget loans for 70 billion tenge were issued to 2,611 agricultural manufacturers. Agrarian Credit Corporation financed works on an area of 3.3 million hectares through the Ken Dala Crediting Program at a preferential rate of up to 5% per annum. Most applications were received from North Kazakhstan, Kostanay, Akmola, and Turkistan regions. This year, in Turkistan region alone, 1,438 agricultural manufacturers (mainly small farms) received concessional loans for a total of 5.7 billion tenge.
The corporation has been a major sponsor of spring sowing and harvesting campaigns since 2016. To achieve these goals, soft loans are annually allocated from the republican budget. Since last year, as directed by President Kassym-Zhomart Tokayev, the funding of the spring field and harvesting works has increased to 70 billion tenge.
Thanks to the Ken Dala Program, farmers were able to start the sowing campaign on time, purchase pesticides, fertilizers, high-quality seeds, fuels, lubricants, spare parts for agricultural machinery, and also pay wages to employees. Loans are issued at a preferential interest rate of 1.5% per annum, but not more than 5% per annum for the final borrower.
Given that the spring sowing season is a fairly short period, many farms and agricultural manufacturers apply for loans. For example, this year, 2,611 applications were submitted, which is 7% more than last year.
In order to reduce the crediting terms and make credits available to more agricultural manufacturers, the Agrarian Credit Corporation involves other financial institutions: second-tier banks, microfinance organizations, and 217 credit partnerships uniting more than 30 thousand agricultural enterprises.
This year, 63 out of 70 billion tenge were distributed through funding of financial institutions.