Timur Kulibayev: Real sector financing needs to be restarted
Nur-Sultan hosts the VI Congress of the Presidium of the Atameken National Chamber of Entrepreneurs with the participation of the Prime Minister of the Republic of Kazakhstan Askar Mamin, Chairman of the Presidium of the Atameken NCE RK Timur Kulibayev, government agencies and delegates from the business community from 17 regions of the country.
The participants raised the key problems of business during the congress.
Timur Kulibayev stated that the National Chamber of Entrepreneurs is now negotiating with the National Bank on the availability of financing for the real sector.
"We have agreed that we will talk to the National Bank about the availability of financing and how we can restart financing of the real sector," Kulibayev said.
According to the National Bank of the Republic of Kazakhstan, the share of corporate loans decreased by 11.5 percent of the total loan portfolio, or from 7.9 trillion KZT to 7 trillion KZT, in the first eight months of 2019. At the same time, there was a decrease in loans to SMEs by 20 percent in the first eight months of 2019: from 4,9 trillion KZT to 3,9 trillion KZT. The share of bank loans to GDP fell from 56,5% in 2007 to 22% in 2018.
"We see that consumer lending has grown very much in the country. At the same time, salaries are not increasing, although we say that there is inflation targeting. We will discuss and report to the business community on all these issues together with the government and National Bank," Kulibayev said.
The experts of the Atameken NCE RK noted that the share of new loans for consumer purposes had increased by 2.7 percent in the country. Thus, consumer loans account for 29.8 percent of the total amount of new loans issued by second-tier banks.
During the Congress, measures to address these problems were also voiced, namely, potential sources of funding for the economy were identified. Thus, it is proposed to use the funds of the National Bank, Unified Accumulative Pension Fund and part of the quasi-sector deposits through the PPP mechanism for education, health care, road infrastructure, and housing and public utilities. In addition, it is proposed to use the so-called off-take contracts with national companies as collateral that are credible for the loan. At the same time, such contracts should be concluded in return for counter-obligations of the business to improve the competitiveness of production (modernization, an increase in wages of employees, localization, etc.).
"Work on the problems raised by the business community is carried out on an ongoing basis. All issues raised by the business at different levels are under control. I would like to thank the government because we have a very active and productive dialogue. We are quite successful in addressing the issues that we face," Kulibayev summed up.
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