Concessional loans for farmers to be launched in regions of Kazakhstan

Projects of successful interaction between the state and agribusiness on the example of the North Kazakhstan region were presented at a business breakfast, with the participation of farmers, members of associations and the government, World of NAN reports referring to the press service of the Prime Minister.

Thanks to the preferential crediting within the pilot project 35 agrarian projects were launched in the region - 21 dairy farms, 4 sheep farms, 3 poultry farms and etc. during 2021-2022 through the Agricultural Cooperative "Soltustik". The entrepreneurs were gradually allocated 35 billion tenge for a period of up to 8 years at a nominal interest rate of 4% per annum.

Taking into account the positive experience of the NKR pilot project, the Ministry of Agriculture proposed to scale up the experience throughout the country under even more attractive conditions.

"In North Kazakhstan region the project was implemented in the following way: the Akimat provided concessional funding for the purchase of equipment and livestock through Agricultural Cooperative, while construction and installation works were carried out at the expense of entrepreneurs. As a result today we have 35 successful projects in the region. We suggest to develop the project further, the cost of financing is about 2.5% per annum for up to 10 years. In this case the participation of business is about 15-20%", - said Deputy Minister of Agriculture Zhenis Osserbay.

Regional Akimats are already selecting potential investors. Later on, work groups consisting of government agencies, the Atameken NCE and business representatives will be set up to select investment projects and monitor their implementation. The requirements are quite high: availability of own production and fodder base, financial stability, developed production and others. Participants of the preferential lending program will take on counter obligations on the selling price of their products.

"We expect a 100% return on this program and successful implementation of all participating projects. We will involve large established businesses for participation; projects must yield results within 1-2 years. For its part, the state offers a simple and uncomplicated way of obtaining funds, an extended repayment period and a low interest rate. At the same time, we expect a stable price for the products at the wholesale and retail level as a counter obligation," said Minister of Trade Serik Zhumangarin.

Смотрите больше интересных агроновостей Казахстана на нашем канале telegram, узнавайте о важных событиях в facebook и подписывайтесь на youtube канал и instagram.