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In accordance with the instructions of the Head of State and the Government of Kazakhstan’s decisive efforts to accelerate economic growth, Guarantee Funds have been launched under ‘Baiterek’ National Managing Holding based on the Damu Entrepreneurship Development Fund. These funds are aimed at supporting lending for SMEs and large-scale business projects.
The SME Guarantee Fund is being established in collaboration with the Government, second-tier banks, and other investors. It aims to provide access to loans of up to KZT 7 billion for entrepreneurs who lack sufficient collateral. This mechanism will reduce dependence on funding from the republican and local budgets.
Key terms for SME guarantees:
At this stage, participation agreements have been signed with Bank CenterCredit, Halyk Bank, and Freedom Bank, with further expansion of participants expected.
The first entrepreneur to utilize the guarantee instrument of the Damu Fund was Oleg Pankeyev from the Zhambyl Region — a client of Bank CenterCredit — who produces ASATU pasta products.
“Thanks to the new guarantee from the Fund, we were able to obtain financing for the construction of a new production facility on favorable terms. This has been crucial support for our business, making the financing process much faster and simpler. The project will also help create new jobs and contribute to the region’s economic development,” said Oleg Pankeyev.
The Guarantee Fund for large-scale projects is designed to expand access to credit for major businesses by channeling liquidity from commercial banks and other investors into the real economy. Its capital will be formed through contributions from ‘Baiterek’ Holding and other legal entities.
This instrument is expected to address collateral shortfalls, increase lending volumes, and attract private investment into strategic sectors, such as manufacturing, agriculture, and infrastructure — including energy, telecommunications, transportation, tourism, healthcare, and education.
Key terms for guarantees under the Large-Scale Business Guarantee Fund:
The Guarantee Funds under the Damu Fund are aligned with international best practices in credit guarantee systems. Benchmark models include Korea’s Credit Guarantee Fund (KODIT), Turkey’s Credit Guarantee Fund (KGF), and Japan’s Federation of Credit Guarantee Corporations (JFG), among others.
The guarantee fee is set at 1.5% for SMEs and 2% for large projects. Guarantees will be issued on an irrevocable and unconditional basis, which enhances their appeal to financial institutions.
The launch of the Guarantee Funds is expected to grow the guarantee portfolio to KZT 1 trillion by 2027, supporting over 50,000 projects annually — five times more than in 2024.
As part of the evolution of public support instruments, the country is transitioning from interest rate subsidies to a more sustainable guarantee-based mechanism. However, the interest subsidy program remains in place for loans up to KZT 200 million to continue supporting micro and small businesses.
Entrepreneurs can apply for guarantees directly through lenders. Consultations are also available at Damu Fund’s regional branches or via the Call Center at 1408.
Damu Entrepreneurship Development Fund JSC is a national development institute, with 100% of its shares owned by Baiterek National Managing Holding JSC. The Fund’s mission is to support the sustainable development of SMEs and microfinance organizations in Kazakhstan by serving as an integrator and operator of financial and consulting services.
