Almost 50K units of agricultural machinery transferred to Kazakhstan's farmers
At the same time, in 2019 KazAgroFinance JSC helped Kazakhstan’s farmers on favorable terms to acquire 5.9 thousand new tractors, combines, seeders and sowing complexes, the press service of the Ministry of Agriculture of Kazakhstan reports.
KazAgroFinance JSC turned 20 years old at the end of last year. The company was established in accordance with a government decree on December 28, 1999 at KazAgro NMH JSC, the sole shareholder of which, in turn, is the Ministry of Agriculture of Kazakhstan. The main mission of KAF is to assist farmers in updating agricultural machinery through affordable leasing.
For 20 years, KazAgroFinance has funded the purchase of almost 50 thousand units of new agricultural machinery for more than 602 billion tenge. Today, the company is a leader in the leasing market for the agro-industrial complex, its share in it is 90%.
In 2019, the joint-stock company leased 5,893 units of equipment to agricultural producers, which is 72% more than in 2018. In particular, farmers were able to purchase 540 combines, 1 713 tractors, 416 seeders, 143 sowing complexes and 3 081 units of other equipment on preferential terms, totaling 99 billion tenge.
It should be noted that KazAgroFinance JSC provides two sources of financing - at 17% and 9% per annum. Moreover, the rate of 17% per annum is subsidized by the state in the amount of 10%, i.e. the final rate for farmers is only 7%. In turn, the 9% rate is fixed and not subsidized.
Depending on the cost and type of equipment, the financing period is from 5 to 10 years, the down payment is from 15% to 20%, and for some special programs from 0 to 10%.
In this case, the advance payment can be made by a lessee at his own expense or at the expense of investment subsidies - state subsidies to reimburse part of the costs of investment investments of farmers.
