Kazakhstan to allocate KZT 24 billion to agrarians at 5% per annum for spring field and harvesting work
Subjects of the agro-industrial complex are allowed to obtain a cheaper loan for spring field and harvesting work under the Ken Dala program. The country's agrarians can expect a total of KZT 24 billion.
The Ken Dahl programme has already received loan applications from five regions of the country. It is expected that other regions will be actively involved soon. While the National Bank of Kazakhstan raised the base rate, farmers can take advantage of the loan with a rate of 5% per annum for timely sowing and harvesting work.
"Despite the difficult situation in the economy due to currency adjustments, higher rates and the impact of the coronavirus pandemic, the Halyk Bank and Agrarian Credit Corporation (ACC) started this important process – caring about the prospects of domestic agricultural producers and the agrarian sector as a whole. We express our gratitude to the ACC management for effective partnership and prompt consideration of the issue of financing," Dauren Sartaev, Deputy Chairman of the Board of Halyk Bank, said.
The Halyk Bank started active cooperation with Agrarian Credit Corporation last year, which allowed the financial institution to focus its efforts on the agricultural industry. It should be noted that within the framework of the Ken Dala programme there are no strict requirements on collateral. We provide farmers with more flexible conditions for repayment of loans, taking into account the annual seasonality. Also, we have eased the approach to the structure of collateral for loyal, reliable clients of the bank.
At the same time, the short-term lending, which is less than 12 months, does not allow all agricultural producers to use cheap loans. Now there are proposals from farmers to increase the loan term for up to one year. Taking into account the situation of seasonal prices for agricultural products, granting a loan from spring 2020 to spring 2021 would allow the agrarian to use the loans more efficiently.
"The Bank will continue to provide service support to its customers, including entrepreneurs engaged in agriculture, through its extensive network of branches in all district centers. For their convenience, we have implemented a program of remote online registration of loan transactions, and now our customers do not need to visit the bank's office to transfer documents and sign loan agreements," said Deputy Chairman of Halyk Bank.
Now it is important to continue active lending to agriculture, taking into account the special importance of the agricultural sector for the economy and food security of the country in conditions of the volatility of world markets, declared state of emergency and quarantine of coronavirus infection. The management of Halyk Bank hopes that the government will not change the current rules of subsidies and support for farmers, which will allow them to meet their business objectives related to providing the market with domestic agricultural products.
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