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Decree of the Government of the Republic of Kazakhstan dated October 12, 2021 #732
Project information
Name |
National Project for the Development of the Agro-Industrial Complex in Kazakhstan in 2021-2025 (hereinafter referred to as the National Project or the Project) |
Goal |
To create a competitive agro-industrial complex by increasing labor productivity by 2.5 times, doubling the export of agricultural products, and providing people with domestically produced food products |
Implementation period |
2021-2025 |
Expected economic effect |
– 100 thousand permanent jobs – 400 thousand seasonal jobs. |
Expected social effect |
People are provided with food products (including essential food products) by 80% and more. |
The amount of financing needed for the implementation |
Financing from the state budget: 2021 – 471,9 billion tenge 2022 – 414,1 billion tenge 2023 – 485,6 billion tenge 2024 – 674,8 billion tenge TOTAL – 2 703,3 billion tenge Extrabudgetary funds: 2021 – 807,6 billion tenge 2022 – 1 052,5 billion tenge 2023 – 1 028,3 billion tenge 2024 – 472,2 billion tenge 2025 – 739,4 billion tenge TOTAL – 4 100,0 billion tenge |
National Project Developer |
Ministry of Agriculture of the Republic of Kazakhstan |
State bodies responsible for the project implementation |
|
National Project Manager |
Minister of Agriculture of the Republic of Kazakhstan |
National Project Supervisor |
Roman Sklyar, Deputy Prime Minister of the Republic of Kazakhstan |
Baiterek Holding’s subsidiaries contributing to the program implementation
The Holding’s subsidiaries implement the State Program providing financial services at the expense of budgetary, own, and borrowed funds. The State Program is implemented by the subsidiaries, which previously belonged to the KazAgro National Management Holding. KazAgro merged into Baiterek Holding in March 2021. These companies are licensed to carry out certain types of banking operations.
The Agrarian Credit Corporation (hereinafter – ACC) issues loans for investment projects, finances spring field and harvesting works, and funds second-tier banks, credit partnerships, microfinance organizations, and leasing companies that then finance agribusinesses.Funding is provided at a rate from 1.5% per annum (at the expense of budgetary funds for sowing and harvesting campaigns) to 7% per annum, taking into account subsidized remuneration rates (at the expense of extra-budgetary funds allocated for the production and processing of agricultural products). The maximum loan term is 12 years, depending on funding sources.
In December 2021, the Fund for Financial Support of Agriculture (hereinafter – FFSA) was merged into the ACC. The FFSA’s functions of issuing microcredits and insuring projects in the agro-industrial complex were taken over by the ACC.
KazAgroFinance (hereinafter – KAF) leases agricultural machinery at a remuneration rate of up to 6% per annum for a period of up to 10 years, depending on the type of machinery. The KAFsubsidizes up to 25% of the cost of agricultural machinery. The money can also be used to pay an advance payment.By the order of the President, 100% of KAF shares were transferred to the ACC on July 25, 2022.
The loans issued by Baiterek Holding’s subsidiaries have a grace period for repayment of the principal debt, depending on the industry the financed project belongs to. The Holding’s subsidiaries provide more favorable conditions for property pledges than second-tier banks. The subsidiaries also accept hard-to-sell property in rural areas as collateral.Feel free to visit the subsidiaries’ websites or regional branches to get more information on the financial support programs.
Financing of the agro-industrial complex
Billion tenge
In 2021 | As of July 1, 2022 | 1st half of 2023 | |
The amount of financing |
464,2 |
241,4 | 364,5 |
ACC (including FFSA) | 322,5 |
182,6 |
271,3 |
KAF |
141,7 |
58,8 |
93,2 |
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