ACC continues to finance spring field and harvesting operations

Ensuring the country's food security is one of the main tasks of the state. An important role in this issue is solved by the effective conduct of spring field and harvesting operations

Additional 300 billion tenge for spring field work

JSC Agrarian Credit Corporation (ACC), a subsidiary of JSC National Managing Holding Baiterek, is steadily improving its activities and increasing the volume of financing for the agricultural sector.

For example, if in 2021 the volume of concessional loans for spring field and harvesting works (VRIUR) under the Ken Dala program amounted to 70 billion tenge, then in 2022 the volume doubled to 140 billion tenge. For three years, the Corporation has been issuing loans for foreign direct investment in the amount of 140 billion tenge annually.

And if in previous years loans were issued short–term, and they had to be repaid before December 1, now the financing is medium-term, the repayment periods have been increased (repayment of 50% of loans is currently carried out before December 1, the remaining 50% - until March 1 next year), which makes it possible for farmers to realize the harvest at a more profitable price the price.

In addition to 140 billion tenge allocated through budget loans, additional financing was increased by 300 billion tenge. This was done as part of the execution of the order of the President of the Republic of Kazakhstan, with the support of the Government, the National Management Holding "Baiterek" and JSC "Agrarian Credit Corporation".

Due to this additional financing, the coverage of 4.0 million hectares of acreage has been provided.

The new conditions for financing farmers are unprecedented, and the mechanism solves a number of important issues for farmers.

First. A preferential interest rate for borrowers at the level of 5% per annum has been provided.

Previously, farmers had to apply to local agriculture departments to reduce the interest rate and receive subsidies, sign new obligations, and wait for funds to be allocated, which greatly affected their financial well-being. Now there is no need for this, within the framework of this product, the Corporation has initiated changes to the relevant state subsidy rules, thanks to which the most favorable and convenient conditions have been created for farmers. The lender, represented by the Agrarian Credit Corporation, took over all the work on subsidizing the rate. The farmer receives an already reduced rate without the need for any additional operations.

Second. Often, agribusiness entities, when applying to a Corporation for loan funds, face the problem of a shortage of collateral. This problem is voiced by all entrepreneurs and public organizations in the agricultural sector.

In accordance with the new state support mechanism, 85% of the loan amount to farmers under the Ken Dala 2 program is guaranteed by the Damu Entrepreneurship Development Fund.

Thus, when obtaining loans for spring field work, it is enough for farmers to provide collateral in the amount of no more than 15% of the total loan.

State support measures are provided on a regular basis

Supporting farmers and continuously improving their services is the main task of the Agricultural Credit Corporation.

So, last year, agricultural producers of grain-growing regions suffered due to adverse weather conditions, which primarily affected their ability to fulfill loan obligations. To support them, loans were extended for a total amount of 56 billion tenge deferred.

This year, as part of the execution of the order of the Head of State to support farmers affected by floods, conditions for deferred payments were approved for clients of ACC and its subsidiary KazAgroFinance JSC (KAF).

All payments according to the 2024 schedules are distributed to subsequent payments from 2025 until the end of the financing period in uniform payments. For projects with a loan expiration date in 2024-2025, a prolongation period of no more than 24 months is provided, depending on the direction of the borrower's activity.

The loans of the affected borrowers are not subject to fines and penalties for late payments arising from the effects of the floods.

In order to speed up the consideration of applications, ACC and CAF approved a simplified application review process based on a minimum number of documents.

To get advice and apply for the Ken Dala 2 program, you need to contact the nearest regional branches of the Agrarian Credit Corporation JSC. Additional information is available on the Agrocredit website.kz and by Call center numbers: 5353 for Kcell, Activ, Beeline subscribers and 8 701 006 19 91 for Tele 2, Altel.