Economics of simple things: number of approved projects nearly doubles

9 July, 2019 14:00

The program of preferential crediting runs as part of the economics of simple things acclaimed in the address of Yelbasy (Leader of the Nation) to the people of Kazakhstan “Growing welfare of Kazakh citizens: increase in income and quality of life” to handle development of small- and medium-sized entrepreneurship and employment, thereby creating new jobs. Read more below.

As of 4 July 2019, around 1500 business projects for KZT1trl fell under the Project Office’s work, making up 30% of all the potential participants nationwide. 92 projects for KZT41bn were approved and 166 projects for KZT280bn were before the banks. Among the most active regions were Akmola, Mangystau, Pavlodar regions and Almaty with the quantity and cumulative implementation rates as the criteria. The less active included the city of Nut-Sultan as well as Atyrau, Kostanay, Western Kazakhstan regions. As for banks, CenterCredit, Halyk Bank and NurBank proved to be more active.

“The adoption of the first package of amendments providing for guaranteeing the insufficient deposit base, enhanced financing of operating cash and adding new products for crediting efficiently contributed to the program”, Zhenis Kassymbek, the Minister of Investment and Development of Kazakhstan, told.

Over the last month, the number of approved projects almost doubled, largely in the spheres such as manufacturing (KZT6.6bn), services, the agro-industrial complex (KZT4.2bn). Out of 92 approved projects, 29 provide for creation of new plants and 63 envisage expansion of the existing ones. Once these projects are done, 2000 jobs will appear as well as will an increase in taxes by 6.6 billion tenge.

“80 per cent of the business projects are at the stage of developing business plans and collecting documents and have not been summited to the second-tier banks for consideration yet”, he said.

To ensure the mass involvement of business in the program, the services of credit consultants based on the existing Entrepreneur Service Centers were set up.

The governmental decree on the second package of amendments was passed on 28 June, allowing for the support to over 440 business projects for KZT162bn with more than 5000 jobs created and KZT3.5bn in taxes.

“As for the projects relating to the economics of simple things, well-established work on the approved projects as well as the projects that are before the second-tier banks is in Akmola, Mangystau, Pavlodar and Kyzylorda regions, while Atyrau, Kostanay, Western Kazakhstan regions and the city of Nur-Sultan fall behind”, Askar Mamin, the Kazakh PM, told.

Taking into consideration the proposals from the business communities and governmental agencies, the conditions of preferential financing to develop the projects of the economics of simple things have already amended, the interest rate has reduced to 6% and the preferential repayment period has launched, 45 new product items have been included, allowing for a greater range of companies to reach out for preferential crediting.

The following instructions were given by the PM: to develop a draft decision; to allocate funds in an effort to increase the subsidies to replenish operating cash of the agro-industrial complex’s projects; to fulfill KPI to increase the share of domestic goods and services regularly reporting in the Project Office.

Adlet Seilkhanov

For more reading:

Economics of simple things: entrepreneurs to take loans at lower interest rate

Economics of simple things: Kazakhstan will down imports to 37%

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