The Roadmap was developed jointly by the interested state bodies and the National Bank.
Minister of National Economy of Kazakhstan Timur Suleymenov has announced the provisions of the Roadmap for the implementation of the five social initiatives of the President of Kazakhstan.
"The Roadmap consists of 35 events, amendments to three codes are envisaged, drafts of 10 laws, 6 resolutions of the Government and 3 resolutions of the Board of the National Bank will be developed", Timur Suleymenov said.
The Minister noted that the main activities related to the first direction "New opportunities of house-buying for each family", implemented by the National Bank, concern the approval of the "7 - 20 - 25" Program and amendments to the regulatory legal acts for its implementation. A special subsidiary will be established to buy out mortgage loans.
In addition, it is planned to consider the increase of the financing of the "Nurly Zher" program and making adjustments thereto, taking into account the norms of the "7-20-20" program.
Chairman of the National Bank Daniyar Akishev placed emphasis on four main stages in order to prepare for the implementation of the Program "7-20 - 25. New opportunities of house-buying for each family".
"When implementing the first stage it’s necessary to restore the mechanism of securitization of mortgage loans, maximizing the opportunities of the banks and the stock market. In the near future, the Board of the National Bank will consider the issue of creating of a 100% subsidiary special company - an operator of the program. The capital of the new company will be formed at the expense of the National Bank. The capital is necessary for the company to raise funds from the financial market under market conditions for the repurchase of new mortgage loans granted by banks under the formula 7-20-25. This is a mechanism of securitization", the Chairman of the National Bank said.
The second stage implies the recognition of this company by a financial agency for the effective implementation of the Program.
"This means that for the company's bonds there will be the same taxation as for government securities. The National Bank will submit the necessary legislative amendments to the Government in March", D. Akishev continued.
The third stage is characterized by the fact that the new opportunities for the housing initiative are an unprecedented step of the state and provide everyone with the preferential terms. But the program should not give rise to dependency.
"The financial conditions of the program require the solvency of future borrowers. A citizen of Kazakhstan who has an official income bracket can take part in the program. The criteria are now being worked out by the banks. For example, if the housing cost is 7 million tenge, the monthly payment will not be more than 50,000 tenge, which is generally acceptable for the majority of working people of Kazakhstan. The differentiation of the housing cost in large cities and regions is not ruled out because the cost of housing is different", the Chairman of the National Bank said.
The fourth stage means that the preferential mortgage loans must be fully secured and absolutely refundable.
The main executor of the second direction "Tax burden reduction for wage increase of low-paid workers" is the Ministry of National Economy. Within the framework of this direction, it is planned to work out proposals on changing the norms of the tax legislation. The issue of reducing the amount of the personal income tax (PIT) of low-paid workers will be worked out. It is planned to consider the procedure for taxation and the mechanism for administering the PIT. In addition, the possibilities of introducing a progressive PIT scale will be explored.
The Ministry of Education and Science is responsible for the implementation of the third direction "Increasing the accessibility and quality of higher education and improving the living conditions of student youth". It is planned to increase the state educational orders with an emphasis on technical specialties. Issues on the development of the infrastructure of the education system will be worked out.
Draft government decrees will be developed to increase grants for technical and agricultural specialties.
According to the Roadmap, the Ministry of Education and Science sent its proposals to "Atameken" National Chamber of Entrepreneurs, as well as to universities.
"We are waiting for proposals from them. According to this project, 11 thousand grants will be directed to technical specialties, 5 thousand - to other specialties, 3 thousand grants - to magistracy and 1 thousand grants - to PhD. It is also necessary to make changes in the budget legislation, in regulatory legal acts. All this must be done in a timely manner", Minister of Education and Science Yerlan Sagadiyev said.
The Minister also noted that the Ministry of Education and Science of Kazakhstan held several meetings with the banks, universities, construction companies, the National Bank, the Ministries of Finance and Economy in order to build dormitories.
"A university or a construction company, if they do not have land, should take it from the Mayor’s Office or buy it. To begin with, it’s necessary to make the design and estimate documentation of the project. The project should indicate how many places the facility will have", Ye. Sagadiyev noted.
After the preparation of the project, the second step is the conclusion of an agreement between the Ministry and the Financial Center for the sites to be built.
"Now on average 200 thousand tenge is paid for eight years on one bed-place. We offer such subsidies, if we build at the expense of the state, then for five years we will use 225 billion tenge, and if we accept the scheme offered by us, only 20 billion tenge we use", Ye. Sagadiyev suggested.
According to the Minister, the preliminary scheme for the construction of dormitories has already been agreed with the second-tier banks, universities, developers, the Ministry of Finance and the National Bank. The second-tier banks confirm the sufficient size of tenge liquidity. Thus, the universities on the basis of agreements can get a loan from a bank, attract a construction company and in the future build a dormitory.
"The construction of dormitories should be made within the "Nurly Zher" program. Universities, especially state universities, have a necessary territory. We ask the Mayor’s Offices at their level to provide land plots to the universities and to solve the issues of providing the utility systems", Ye. Sagadiyev concluded.
The Ministry of Labor and Social Protection is responsible for the expansion of microcredit. In this direction, it is planned to make adjustments to the Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021.
The changes will be aimed at increasing funding for microcredit in cities and rural areas and promoting entrepreneurship.
Mechanisms will be developed to provide microcredits for the implementation of projects on anchor cooperatives around large agricultural enterprises.
Within the framework of the fourth initiative of the President, the Ministry of Labor and Social Protection of Population proposed the following approaches:
1. Out of additional 20 billion tenge allocated, about 14 billion tenge is proposed for lending in villages and small towns. Of this amount, 10 billion tenge is proposed to be spent on the implementation of anchor cooperation projects around large processing agricultural enterprises;
2. There is a need for timely signing of tripartite credit agreements for all allocated funds and to start issuing microcredits;
3. For greater coverage of the population with microcredit, it is proposed to revise the limits for granting loans differentially for the city and the village;
4. To date, the mechanisms have been worked out for bringing microcredits to the final consumer. So, in cities and single-industry towns - microcredits are provided through second-tier banks. In rural areas - through the Fund for Financial Support of Agriculture, as well as microfinance organizations and credit partnerships.
The Ministry of Energy is responsible for the further gasification of the country. The work of the Ministry will be concentrated on the construction of the first stage of the Saryarka main gas pipeline.
The schemes and terms of the project financing will be determined. It is planned to raise funds from MFIs such as EBRD, EDB and others. Land plots will be allocated along the main gas pipeline.
Energy Minister Kanat Bozumbayev noted that responsible state bodies and companies have been identified in the directions.
For the development and approval of the PSD and allocation of land plots for the laying of the main gas pipeline along the Kyzylorda - Zhezkazgan - Karaganda - Temirtau - Astana route (June 2018), the responsible: the Ministry of Energy, the Ministry for Investments and Development, Governor’s Offices of Kyzylorda, Karaganda, Akmola regions and the city of Astana, KTG. To determine the scheme and conditions for financing the project by raising funds from international financial institutions (June 2018): "Baiterek" Holding, the Ministry of Finance, the Ministry of National Economy, the Ministry of Energy, Samruk-Kazyna, KMG, KTG.
"Samruk-Kazyna" NWF JSC set up or identify a subsidiary for the implementation of the project and form a charter capital at a sufficient level to attract funding. The term is June 2018. Responsible: Samruk-Kazyna (vault), the Ministry of National Economy, KMG, KTG", the Energy Minister concluded.
Let us remind you that the five social initiatives of the President were announced by the Head of State at a joint session of the Chambers of the Parliament on March 5.