Deputy Prime Minister instructed to simplify access to finance for farmers

Deputy Prime Minister instructed to simplify access to finance for farmers

Possibilities of easing the collateral policy in granting soft finance to farmers for implementation of investment projects have been discussed in the government, reports World of NAN.

Even with an active pace of financing, farmers often face a rather serious barrier is the lack of collateral to obtain a loan.  

“The Damu Fund acts as a guarantor of up to 85% of farmers’ loans to ACC and second-tier banks in case of insufficient collateral. And ECA provides insurance support to exporting enterprises in the manufacturing sector. The Damu guarantee instrument will significantly facilitate farmers’ access to loans at a preferential rate. But due to documentary conflicts at Damu and high tariffs at ECA, barriers arise that complicate the issuance of loans to farmers,” noted Vice Minister of Agriculture Erbol Taszhurekov.

The need to maximise the simplification of farmers' access to finance was also stated by the Deputy Prime Minister.

"We together should work out mechanisms that would be convenient for farmers and safe for financial institutions. The Export Credit Agency should consider the possibility of reducing tariffs for priority projects of the agro-industrial complex. And the Ministry of Agriculture together with the holding ‘Baiterek’ to work out options for allocation of funds under the program of guaranteeing investment projects in the agricultural sector,’ concluded Deputy Prime Minister Serik Zhumangarin.

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