Economics

Interest rates on all existing loans to SMEs will be subsidized in Kazakhstan

Photo: Kazpravda.kz/Adilbek Tauekelov
The Head of State Kassym-Jomart Tokayev told about new measures to support entrepreneurs in Kazakhstan, speaking with a message to the people at a joint meeting of the chambers of the Parliament, Kazpravda.kz reports.

"Small and medium-sized businesses are going through difficult times due to the pandemic. More than 700 thousand entrepreneurs have previously been granted concessions. As an additional aid to small and medium-sized businesses, I instruct to provide state subsidizing of interest rates of up to 6 percent per annum on all existing loans to small and medium-sized businesses in the affected sectors of the economy. Subsidizing will cover a period of 12 months - from March 16 this year. The National Bank implements a special program for replenishment of working capital for SMEs. Earlier it was assumed that it will expire this year. In the current conditions I instruct to extend this program by the end of 2021, as well as expand its coverage," the President of the Republic of Kazakhstan ordered.

The Head of State noted that 200 billion tenge should be provided for this.

"I also instruct to suspend until the end of the year the charging of rent on real estate owned by government agencies. In the current conditions, the preservation of employment and incomes of the population is an absolute priority. Therefore, it is important at this time to reduce the burden on the payroll for SMEs in the most affected industries. In this business category I instruct to cancel deductions from wages to extra-budgetary funds for a period until the end of the year," the Head of State continued.

According to the President, the Government will have to determine strategically important areas of production, key export priorities, and significantly expand the toolkit of measures to support business.

"For strategic projects, package provision of grants, concessional financing, partial guarantees, export support mechanisms should be envisaged. It is important to provide for guaranteed procurement from the state and quasi-public sectors and subsoil users. The main novelty is the stability of legislative conditions for the duration of projects," Kassym-Jomart Tokayev concluded.
Author:
Ekaterina Eliseyeva
16:16, 1 September 2020
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