JSC "Fund for financial support of agriculture"
Website: http://www.fad.kz
The main activity of the Fund is micro-crediting of rural population and agricultural ENTERPRISES, lending to micro-credit organizations, as well as performing the functions of a state agent for insurance in crop production.
Since 2005, the Fund has been providing micro-loans to the rural population as part of the budget program to ensure access to financial resources for rural households. In 2005-2011, the Fund issued 62,930 micro-loans to the rural population totaling 14.8 billion tenge from the national budget and reinvested funds. By type of activity, these funds were issued: for the development of livestock-57,157 micro-loans in the amount of 13,391. 5 million tenge, for the development of crop production – 3,763 micro-loans in the amount of 717.6 million tenge. for other types of business-2,010 micro-loans in the amount of 693.8 million tenge. Due to the issued micro-loans for the period from 2005 to 2011, the Fund provided employment to 64,620 people, purchased more than 355 thousand heads of animals, and sown more than 45 thousand hectares of land.
In accordance with the tasks of creating an institutional infrastructure for micro-credit in rural areas, 51 MCOs were created with the participation of the Fund in 2006-2008, operating in rural localities of 94 district centers. When creating the MKO, 296.8 million tenge was allocated for the formation of authorized capital. As of January 1, 2012, out of the total number of established ICOS, 10 ICOS have purchased the Fund's share in the authorized capital and are operating independently. Through micro-credit organizations from the national budget to rural households in 2007-2011 12,218 micro-loans were issued in the amount of 4.1 billion tenge.
In addition to supporting rural households, since 2009 the Fund has been actively working to attract loans from local Executive bodies for subsequent lending to small businesses in rural areas. In 2009-2010, the Fund concluded loan agreements with local Executive bodies of 12 regions (with the exception of Akmola and South Kazakhstan regions).
The total amount of funds raised from local budgets for further lending to small businesses in the regions amounted to 1,850 million tenge. At the expense of these funds, the Fund financed 806 business projects in the amount of 2,027. 9 million tenge. Funded projects provided employment for 2,067 people.
In 2008, the Fund launched a pilot program for crediting projects for the construction and operation of mini-greenhouses from the Fund's own funds. This program is implemented only in the southern regions of the Republic. During the period from 2008 to 2011, the Fund financed 125 projects in the amount of 252.5 million tenge. The total area of greenhouses built is 6.3 hectares. Lending to these projects gave rural entrepreneurs not only financial support, but also the opportunity to provide their households with the necessary vegetables.
In 2010, the Fund introduced a new program "Eginzhay" - lending for spring field work. In the period from 2010 to 2011, The Fund financed 552 projects for the amount of 1,203. 2 million tenge under the program of crediting of VPR. In 2012, the Fund continues lending to spring field work, which allocates its own funds in the amount of 600.6 million tenge.
In addition to these lending programs, in 2011 the Fund launched the Sybaga program for crediting agribusiness entities for the purchase of breeding stock of cattle and bulls for the reproduction of young meat breeds.
The goal of the program is to involve small and medium-sized farmers in the process of increasing and improving the quality of local livestock. This project is being implemented as part of the investment program acting in accordance with the instructions of the Head of state to implement the export potential of the agro-industrial complex.
Under this program, 334 projects were financed from the Republican budget in the amount of 2,000 million tenge, 183 projects in the amount of 1,051. 8 million tenge from own funds, and 158 projects in the amount of 1,000,0 million tenge from attracted funds (as of January 1, 2011). In addition, under the program of lending to micro-credit organizations for long-term lending to agricultural producers for the purchase of breeding stock of cattle and bulls for the reproduction of young meat breeds under the program "Sybaga", 2 MCOs were financed in the amount of 300 million tenge.
Thus, in General, under the Sybaga program, 725 projects were financed for a total of 4,351. 8 million tenge, at the expense of which borrowers purchased 26,290 heads of cows and 683 bulls. In 2012, 3,000 million tenge was allocated from the national budget for lending under the Sybaga program.
Since 2004, JSC "Fund for financial support of agriculture" provides services of an agent for managing budget funds to support mandatory insurance in crop production. In accordance with the Law "on compulsory insurance in crop production", state support for compulsory insurance in crop production is provided by reimbursing 50% of insurance payments to insurance companies and mutual insurance companies for insurance cases arising as a result of adverse natural phenomena.
It should be noted that the Fund also carries out non-financial activities. So, in 2005-2008, the Fund together with JSC "KazAgroMarketing" carried out activities to train rural residents. Training was conducted in an interactive form throughout the country on the topics "Basics of microcredit", "Basics of entrepreneurship","Business planning". The total number of rural residents who attended more than 4 thousand seminars during the period was more than 99 thousand people.
There is a micro-credit organizations support Center established in 2010 for the purpose of institutional development of microfinance in rural areas by the Foundation together with a foreign partner, the Microfinance Center (Poland). The Center's activities are aimed at developing the microfinance sector through institutional strengthening of Kazakhstan's MKO by introducing innovative approaches and providing high-quality specialized consulting services on an ongoing basis.
010000, Astana
PR. (Sary-ARKA) Turan, 19/1
Tel. 8 (7172) 67-82-52
Fax: 8 (7172) 67-82-43
Kostanay branch
Kostanay, Baitursynov str., 140
e-mail: kustanai@fagri.kz
phone: 8 (7142) 53-39-16