Business needs cash infusions
The banking sector is not interested in lending to SMEs
This was stated by Acting Director of the Chamber of Entrepreneurs of Kyzylorda oblast Darkhan Myrzaliev during the summary meeting with entrepreneurs.
The meeting was attended by the Chairman and members of the Regional Council, deputy akim of the region, heads of government agencies, development institutions, banks, associations and NGOs, businesses from all regions and cities.
The first head of the regional chamber of entrepreneurs noted the low level of access to finance for entrepreneurs.
"Currently there is an acute problem in ensuring the availability of financial resources, especially in rural areas. First of all, it is the low level of lending to small and medium-sized second-tier banks. In particular, in Kyzylorda region the structure of the portfolio is dominated by the share of consumer loans, which is more than 60%, which exceeds republican rate more than 3 times. This statistic shows that the banking sector is not interested in lending to SMEs, especially in rural areas, thereby putting stringent requirements for collateral", - said Darkhan Myrzaliev.
Director of RCE also pointed to another problem.
"The main financial institution in the village is the National Managing Holding "KazAgro". However, despite the predominant share of the lending to agribusiness on the market, the subsidiaries of "KazAgro" are not able to meet fully and timely the growing needs of an annual agricultural financing. In the presence of a considerable amount of support tools for agribusiness, we can see a insignificant effect in the development of agricultural entrepreneurship and growth of small businesses to medium and medium to large", - said Myrzaliev.
The Head of RCE also said that entrepreneurs actively use the services of microcredit organizations that provide loans at exorbitant interest rates, and they can apply for a loan in MCO quickly, but at high interest rates and for a short term.
"The problem of the development of MCO (microcredit organizations) is non-involvement of private microcredit organizations in the implementation of state and industry programs, as well as the inability to attract long and cheap funds", - said Darkhan Myrzaliev.
To solve this problem, the following suggestions were made to the Government of the Republic of Kazakhstan - the creation of regional centers of financial support for small and micro businesses in all regions and centers for support of investment projects on the basis of Business Support Centres and Centres for Servicing Entrepreneurs under the Chamber of Entrepreneurs
"At present, in Kyzylorda region was created LLP "RIC "Kyzylorda", which finances projects in rural areas on favorable terms. Currently, LLP funded 51 projects worth 303 million tenge. NCE together with the regional akimat plans to implement a pilot project on business development in rural areas "Microbusiness of Kyzylorda", - said the Head of RCE.
Speaking about the work of the centre for support of investment projects on the basis of the BSC and CSE under the Chamber of entrepreneurs, he noted that at present there are a lot of tools to support entrepreneurship in the framework of state programs.
"However, entrepreneurs are not always aware how to use these tools. For example, if to consider a project of creation a feedlot, it is just one project, but in its implementation an entrepreneur faces various issues, such as provision of fodder, veterinary issues, human resources, supply of raw materials and supplies, search of supply markets and export ", - concluded Darkhan Myrzaliev.
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