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In April 2025, Kazakhstan launched two new Guarantee Funds based on the Entrepreneurship Development Fund “Damu”, a subsidiary of the Baiterek National Managing Holding. These initiatives have significantly expanded entrepreneurs’ access to financing.
With the help of these funds, businesses can now obtain bank loans even with insufficient collateral—including loans exceeding 7 billion tenge. Inbusiness.kz examined how the updated guarantee system works, who is eligible for support, and which projects have already received assistance.
Baiterek: A Systemic Approach to Economic Development
The Baiterek National Managing Holding plays a key role in the architecture of Kazakhstan’s economic development. The Holding implements large-scale programs to support entrepreneurship, exports, the agro-industrial complex, and affordable housing. In the past year alone, the Holding provided 6 trillion tenge in support: 4.1 trillion went to business support, and 1.9 trillion to the development of the housing and construction sector.
As noted by the Head of the Holding’s Press Service, Perizat Shakenova, one of Baiterek’s strategic goals is to facilitate sustainable economic growth and ensure annual GDP growth of 6%. To achieve this, the Holding implements effective financial instruments designed to eliminate key barriers to business development.
What Is a Guarantee and How Have the Rules Changed?
One of the key tools for state support of entrepreneurship is loan guarantee—a mechanism by which the “Damu” Fund provides guarantees to banks and other financial institutions for loans issued to entrepreneurs lacking sufficient collateral. This solution is especially relevant for regional businesses, where asset values used as collateral are often much lower than in large cities.
Prior to 2025, guarantees were already being used in Kazakhstan but were mainly limited to existing entrepreneurs and subject to restrictions on loan and guarantee amounts. The situation changed in April this year when, by order of the Head of State and a Government decree, two new Guarantee Funds were established under the “Damu” Fund, part of the Baiterek Holding structure.
A major innovation is the irrevocability and unconditionality of guarantees. This means that in case of loan default, the “Damu” Fund cannot refuse to fulfill its obligations to the bank. This condition has increased the instrument’s attractiveness to lending institutions and improved entrepreneurs’ access to funding.
Guarantee Fund 1: Supporting Businesses Up to 7 Billion Tenge
The first Guarantee Fund targets business projects requiring financing of up to 7 billion tenge. It also introduces a portfolio guarantee mechanism. Under this approach, a bank that has signed an agreement with the “Damu” Fund independently decides whether to apply the guarantee to a specific project—without having to submit each application to the Fund for approval. This significantly accelerates the process—approval occurs within two business days.
Key advantages of the new mechanism include:
Financing amount not exceeding 7 billion tenge;
Maximum guarantee coverage up to 85% of the loan, but not more than 3.5 billion tenge;
Guarantee term is five months longer than the financing term;
Guarantees are issued under a fast-track procedure—within two business days and without re-evaluation by the “Damu” Fund.
The capital of Guarantee Fund 1 is formed through contributions from second-tier banks, entrepreneur fees, budgetary funds, and other sources. Agreements have been signed with nine banks: Halyk Bank, Bank CenterCredit, Forte Bank, Bank RBK, Bereke Bank, Jusan Bank, Freedom Bank Kazakhstan, Nurbank, and KZI Bank. Some of them have already made voluntary contributions, demonstrating confidence in the mechanism.
Since the launch of the first fund, 580 projects have been supported with total loans of 71.5 billion tenge, and guarantees totaling 38.5 billion tenge. More than 70% of approved projects are investment-related: the launch of new production facilities, equipment purchases, and construction. The leading sectors by number of approved applications are manufacturing (30% of loans), transport and logistics, healthcare, and education. The program has reached all regions of the country, with the most active being Astana, Almaty, Aktobe, Almaty, and West Kazakhstan regions.
Guarantee Fund 2: Support for Large-Scale Projects
Guarantee Fund 2 is aimed at manufacturing and large infrastructure projects with financing needs exceeding 7 billion tenge. It creates conditions for expanding large business lending by engaging the liquidity of second-tier banks and other investors into the real economy.
Main guarantee terms include:
Support for projects starting from 7 billion tenge;
Maximum guarantee amount — up to 30% of the project cost;
Guarantee term — up to 15 years.
All guarantee applications under Guarantee Fund 2 are subject to mandatory review by the “Damu” Fund. Given the capital-intensive nature of such projects, the final decision for each application is made by the Fund’s authorized body.
Socio-Economic Impact: Jobs and Regional Development
The creation of guarantee funds has significantly increased entrepreneurs’ access to financing—especially in the regions.
“For businesses, the creation of Guarantee Funds means access to financing even with little or no collateral. For the economy, it means the creation of new jobs, the production of export goods, and infrastructure development in the regions,”
— Perizat Shakenova emphasized.
Real-life examples clearly demonstrate the effectiveness of the new tools:
In Akmola Region, LLP Viamedis Kosshy received a 3 billion tenge loan with a 2.5 billion guarantee under Guarantee Fund 1. The company is building a large clinic and inpatient facility, forming a modern medical complex.
In Almaty Region, LLP MEISTER COMPANY obtained a 1 billion tenge loan (500 million tenge guarantee) to build a construction materials plant, creating 24 new jobs.
In Pavlodar Region, LLP PavlodarMetizCenter used a 450 million tenge loan (229 million tenge guarantee) to expand production and increase staffing to 42 employees.
Other supported projects include the construction of a kindergarten, launch of furniture manufacturing, acquisition of freight transport equipment, establishment of medical centers, and expansion of an ophthalmology clinic. These initiatives not only foster business development but also contribute to job creation and the strengthening of regional economies.
The guarantee mechanism was developed with consideration of best international practices involving state participation (e.g., Korea, Turkey, Japan), ensuring both resilience and efficiency. To apply for a guarantee, entrepreneurs can contact second-tier banks, subsidiaries of the Holding, regional branches of the “Damu” Fund, or call the Call Center at 1408.
Source: inbusiness.kz
