Economy • 10 July, 2018

Three thousand microcredits to be financed this year — Ministry of National Economy

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Prime Minister Bakytzhan Sagintayev instructed to keep under special control the issue of providing microcredits within the framework of the Program for the Development of Productive Employment and Mass Entrepreneurship.

After the consideration of the current implementation status of the Program for the Development of Productive Employment and Mass Entrepreneurship, the Prime Minister drew attention to the need to create conditions for the development of entrepreneurial potential, opening and running business, especially in the countryside. Today the unemployed, self-employed citizens and businesses are given the opportunity to obtain preferential microcredits for the implementation of business projects without sectoral restrictions. Bakytzhan Sagintayev noted that it is necessary to take control of the matter of development of funds allocated for the provision of microcredits.

"It is planned to provide 14,000 unemployed and self-employed with microcredits, also, under the initiative of the Head of State, the volume of microcredit financing was increased by 20 billion tenge. The half-year is over, we need to eliminate all the existing reasons that impede the development of this direction," the Prime Minister said.

In his turn, Minister of National Economy Timur Suleimenov stressed that the provision of microcredits in cities under the Program was realized for the first time in 2017. In the microcredit scheme, seven second-tier banks and two microfinance organizations are involved.

"The total portfolio of microcredit in cities, taking into account the funds of the previous year, is 24.3 billion tenge. Of these, in 2017 funds amounted to 11.9 billion tenge, and in 2018 — 12.4 billion tenge, including 6.1 billion tenge in addition allocated under the Five Social Initiatives of the Head of State," Suleimenov informed.

According to the minister of national economy, at the expense of the funds of 2017, 1,006 projects were financed for 11.1 billion tenge, which allowed the program participants to make the production worth 7.6 billion tenge, pay taxes to the budget in the amount of 299 million tenge.

"At the moment, at the expense of the funds of 2018, 226 projects for 2.6 billion tenge were financed and approved, and projects worth 3.4 billion tenge are under consideration in second-tier banks," Suleimenov said, stressing that in the current year the task is to finance 3,000 projects.

Along with the provision of microcredits on preferential terms, there is also the service of state guarantee in case of insufficient collateral of potential entrepreneurs.

"At present, 355 contracts of guarantee for 2 billion tenge have been concluded, of which in 2017 — 172 contracts amounting to 967 million tenge, in 2018 — 183 contracts amounting to 1.03 billion tenge. Almost every third loan is guaranteed," he said.

In addition, in order to promptly raise funds to the population, in December last year, measures were taken to reduce the maturity of funds by second-tier banks up to 6 months (from the current 12 months), the possibility of purchasing residential real estate and land plots with subsequent mandatory change of purpose was provided.

According to Suleimenov, in the current year, in order to support small projects of beginning entrepreneurs, active entrepreneurs are excluded from the Program.

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