KZT 20 billion allocated for preferential car loans in STB

Development Bank of Kazakhstan JSC (a subsidiary of Baiterek National Managing Holding JSC), in order to finance the program of preferential car loans, sent the next tranche for car loans in the amount of KZT 20 billion to second-tier banks.

By issuing bonds, DBK borrowed KZT 20 billion  from Kazakhstan Sustainability Fund JSC, in accordance with resolution No.79 of the Management Board of the National Bank dated May 31, 2019.

To date, commercial banks have received funds in the following amounts:

SB of Sberbank JSC - KZT 8 bln.;

SO of VTB Bank JSC (Kazakhstan) - KZT 5 billion;

Fortebank JSC - KZT 5 bln.;

Halyk Bank of Kazakhstan JSC - KZT 2 bln.

Thus, since 2015, DBK has allocated six tranches of funds totaling KZT 82 billion to finance the program of preferential car loans. In particular, two tranches from the National Fund in the total amount of KZT 26 billion in 2015-2016, two tranches from the National budget in the total amount of KZT 16 billion in 2018-2019. In 2019-2020, DBK borrowed KZT 40 billion from Kazakhstan Sustainability Fund JSC by issuing bonds.

Lending under the Program is revolving: payments from the repayment of existing loans are directed to the issuance of new loans. Thanks to such re-development of funds, Kazakhstan people purchased on favorable terms 20,629 cars of domestic assembly for a total of KZT 98,219 million.

However, we remind you that DBK as the operator of the Program of preferential car loan improved program implementation by eliminating procedures for the approval of credit applications in DBK under the Program. The measure was introduced to reduce the time for processing applications. However, this does not mean that the DBK does not monitor the intended use of funds by participating banks.

The criteria and conditions for granting preferential auto loans to final borrowers remain the same:

- nominal interest rate - no more than 4% per annum,

- loan term - no more than 7 years;

- loan currency - KZT;

- cost of one unit of passenger vehicles - no more than KZT 15 million.

Buyers are presented 42 models of cars produced by SaryArkaAvtoProm LLP and Asia Auto JSC and such brands as JAC, Chevrolet, Peugeot, Ravon, UAZ, Hyundai. Kia, Skoda, LADA.