KZT600 BILLION TO BE ALLOCATED FOR PRIORITY SECTOR: WHO CAN GET A LOAN?
The launch of allocating loans for the development of the priority sectors of economy is planned for February 2019. Deputy Prime Minister Erbolat Dossayev announced this at the enlarged meeting of the Government of Kazakhstan with the participation of President Nursultan Nazarbayev in Astana.
“In terms of ensuring long-term liquidity for tenge the National Bank and the Atameken NCE jointly developed the Road Map worth 600 billion tenge, then it was approved in December 2018. Nine banks will participate in the program to provide credit facilities for the list of commodity items. The start of projects’ financing is expected in February 2019," Dossayev said.
Nursultan Nazarbayev noted that in case of an effective implementation of allocated 600 billion tenge, the support program for enterprises will be extended. “If we work effectively on very important and necessary projects, products and enterprises, we can extend this program,” President said.
In turn, chairman of the Board of the Atameken NCE Ablay Myrzakhmetov confirmed the readiness of the National Chamber to launch a loan programme to finance the priority sectors of the economy.
Remind that earlier Atameken carried out certification of more than 2,000 domestic enterprises to determine the current state of the manufacturing industry. In the course of certification, Atameken experts determined a list of imported goods, the volume of which is over $20 million. The experts noted that Kazakhstani enterprises manufactures products similar to imported ones and this fact will allow them to make import substitution.
President also pointed out that loans should be allocated only to those companies that can repay them. Nazarbayev noted that loans should be given to those "who have shown the success of their work and the return of funds."
In addition, President instructed to conduct an independent assessment of the asset quality of all banks in Kazakhstan.
“The development of business in the country is constrained by excess debt, lack of equity. For three years, the bank debt of an insolvent business increased 3.5 times. The economy needs profitable projects and competitive enterprises. In the past three years, the number of enterprises that are on the verge of bankruptcy has almost doubled. The excess debt, lack of equity impedes the development of business. For three years the bank debt of an insolvent business increased by 3.5 times,” Nursultan Nazarbayev said.
President asked Ablay Myrzakhmetov: “Who can get loans?”
“I fully agree with you, now we need to raise the responsibility of business. State funds should be allocated only to those entrepreneurs who are willing to modernize and invest in new equipment. Moreover, if you undertake an obligation, then you should receive loan, as a state assistance. State supports business: the number of inspections has decreased, the number of business entities increased by 8.3 per cent compared to 2017, and about 30, 000 new small businesses have appeared. And it is impossible to say that the condition of businessmen worsened. But at the same time, banks have the entire arsenal to conduct dialogue," Ablay Myrzakhmetov said.