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The spring sowing campaign started in southern regions of Kazakhstan

The spring sowing campaign started in southern regions of Kazakhstan 01.04.2015 “KazAgroFinance” JSC started the transfer of the machinery to agroformations within the spring sowing campaign framework. In particular, the southern regions of the country where the spring plowing in grain-growing, vegetable-growing and cotton farms are already in full swing. To date, the Credit Committee of the Company has already received from South Kazakhstan farmers the applications for the purchase of more than 300 units of machinery amounting to more than 991 million tenge. It is necessary no note the growth of applications for purchase of machinery and technological equipment for spring sowing campaign throughout Kazakhstan as well. The Company has received applications for the purchase of, in general, more than 1,000 units of various machinery and equipment worth more than 7.3 billion tenge from farmers across the country. It is assumed that increase in the number of applications for the purchase of machinery through “KazAgroFinance” JSC is also associated with favorable financing terms. Today, thanks to government support, farmers have the opportunity to obtain machinery at concessionary interest rate. In particular, according to the subsidy program, the government plans to compensate for agricultural producers 7% of the total financing rates. Thus, the interest rate on leasing of agricultural equipment and machinery in “KazAgroFinance” JSC including the subsidy will be 6.4% instead of 13.4%. To note, in 2014 for the spring sowing campaign at the plan of 10.6 billion tenge “KazAgroFinance” JSC financed purchase of 1167 units of machinery to the amount of 11.2 billion tenge. It is planned that in 2015 within the framework of the spring sowing campaign will be transferred not less than 1000 units of machinery to the amount of about 10.5 billion tenge. Among the “popular” equipment, in addition to tractors and seeders, there are such types of machinery as harrows, plows, balers, cultivators, reapers, etc. It should be noted that most of the machinery purchased by farmers within the spring sowing campaign are of Kazakhstan production, in particular, one of the most popular models - the “Belorus” tractors are produced at the Semipalatinsk car assembly plant “SemAZ”. Whereas the attachments for machinery are purchased from the United States as well as from Russia, Belarus, Ukraine, Canada, Germany, etc. In general, the group of companies of “KazAgro” National holding plans to spend more than 97 billion tenge using all sources of financing for spring sowing campaign in 2015. Within this amount, “KazAgro” at the expense of budgetary crediting for further financing of agricultural producers of Kazakhstan on the sowing campaign, will allocate second-tier banks amounting to more than 34 billion tenge. “KazAgroFinance” JSC is a company Created by a decree of the Government of the Republic of Kazakhstan in 1999. Main objective is to support the development of the agricultural sector of the country by ensuring access of agricultural producers to funds as well as to agricultural machinery and technological equipment on a leasing basis.

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