Loans at 2.5% will be given to farmers

The Ministry of Agriculture has developed rules for lending to agricultural sector. A draft document is under discussion at the Open News Portal, World of NAN reports citing the ministry.

Kazakh farmers could receive loans to establish new or expand existing businesses. Including dairy farms (capacity of 400 heads), poultry farms for meat (5,000 tons of poultry meat per year), vegetable stores (1,000 tons), and projects in irrigated agriculture (potatoes, vegetables, fodder production) using modern water-saving technologies (sprinkling, drip irrigation).

Financing will be implemented at the expense of republican or local budgets. According to the draft rules, local executive bodies will be granted budget loans for 10 years with annual interest rate of 0.01%. The grace period for repayment of principal will not exceed 24 months, the period of budget loan disbursement - 12 months.

Akimats will lend to farmers through an attorney (agent). The credit period will be up to 10 years, the maximum amount of credit - 5 billion tenge, the nominal interest rate does not exceed 2.5% per annum. The grace period for repayment of principal and remuneration will not exceed one third of the duration of the loan. Obligatory condition will be the availability of collateral.

At the same attorney (agent) will not charge any fees, charges or other payments, except in cases where the borrower is in breach of contractual obligations. Payment of remuneration to the agent is made by the local executive body from the local budget.

Important criteria for the selection of participants in the credit program will be the sectoral relevance, taking into account import substitution, providing the region with quality and affordable food, creation of temporary and permanent jobs, cooperation and cooperation with projects to improve the income of the rural population. In addition, the potential borrower must have at least 5 years of experience in the production or processing of agricultural products. It is also required to have the necessary area of agricultural land for the formation of a solid fodder base, material and technical equipment of the fleet of agricultural machinery.

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