Damu Fund guarantees 85% of the amount of loans to farmers

This year, for the first time, up to 580 billion tenge is being allocated for lending for spring field work, with 400 billion of it being commercial loan capital, on which a preferential rate will also apply, World of NAN reports citing the Ministry of Agriculture.

"It is necessary to provide financing for the widest possible range of farmers, to focus on small and medium-sized farms. As instructed by the Prime Minister, Akimats together with the ACC need to conduct a precise workout of the list of farms in need of financing," said the head of the Ministry of Agriculture Aidarbek Saparov.

He emphasized the importance of bringing information to each farmer and instructed the Agrarian Credit Corporation to make every effort to involve farmers in lending. These funds will help producers to comply with agro-technologies, use fertilizers in the right amount, carry out necessary treatments.

The new mechanism allows the farmer to borrow at a net 5%, and the loan period of 12 months. To solve the problem of deficit of collateral, the mechanism of guaranteeing farmers' loans in the Agrarian Credit Corporation is being implemented through the instruments of the Damu Fund, which will provide a guarantee of 85% of the loan amount. The remaining collateral will be provided by the farmer himself.

After the loan is approved by ACC, agricultural producers will need to submit documents to the Damu Fund. The list of documents will be posted on the websites of the Agrarian Credit Corporation and Damu Fund.

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