Global quarantine, unstable weather conditions - these are two of the main factors that will affect the harvest in 2020, reports zakon.kz.

But, in spite of everything, the spring sowing continues, and KazAgroFinance JSC (KAF) makes its significant contribution to this crucial agricultural campaign.

According to the State Program for the Development of the Agro-Industrial Complex (AIC) for 2017-2021, one of the main tasks is the technical equipment of the AIC and the growth of labor productivity in the industry. At the moment, the main tool for the acquisition and sale of equipment is leasing, ”the press service of KazAgroFinance JSC said.

The joint-stock company KazAgroFinance JSC, which is part of the KazAgro Holding, is the leader in the leasing market in the agricultural sector and has been supporting domestic agricultural producers for 20 years by providing affordable and high-quality leasing services.

For all the years of its work, KazAgroFinance has invested 814.9 billion tenge in the agricultural industry, financed the acquisition of about 50 thousand units. agricultural machinery and equipment totaling 616.3 billion tenge. This technique processes 10 million hectares of cultivated land in the country.

According to the analysis of the Ministry of Agriculture, the share of the main types of equipment (combines, tractors, sowing complexes) leased by KAF makes up more than 50% of the total volume of equipment purchased by agricultural producers throughout Kazakhstan.

Due to the developed branch network and affordable financing conditions (long terms up to 10 years, advance payment from 0%, grace period up to 1 year, without commissions and collateral), a significant amount of manufactured equipment in Kazakhstan is sold through KAF (on average, sales through KAF are about 60-71%).

As of April 1, 2020, the CAF has already received applications worth more than 69 billion tenge; for spring field work, it is planned to finance the transfer of equipment for leasing in the amount of about 40 billion tenge this year.

In 2019, the support of KAF allowed agrarians to receive 5.9 thousand units of equipment worth 98.5 billion tenge. (growth compared to 2018 for the main types of equipment amounted to 72% in quantitative terms, 56% in monetary terms).

In recent years, the share of domestic-made equipment in the total amount of equipment leased annually is about 21-23%. It should be noted that by type of equipment, the production of which is established in Kazakhstan, the share of leasing of CAF is significantly higher. Thus, the share of leasing of domestic combines in the total leasing volume of KAF combines is about 40% (for 2018-2020).

KazAgroFinance JSC closely cooperates with such key representatives of domestic engineering as:

• SeMaz LLP (production of MTZ brand tractors since 2009) - 5,229 units sold through KAF equipment or 58% of the issued volume;
• JSC "Agromashholding" (production of combine harvesters of the "Esil" brand since 2009) - about 2.5 thousand units of equipment or 71% of the issued volume were sold through KAF;
• KZ Vector vector LLP (production of Vector vector combines since 2011) - about 563 units of equipment or 53% of the issued volume were sold through KAF;
• KAIK LLP (launched production of RSM 2375 tractors and Amity seeders in 2018) - about 60 units of equipment or 61% of the output were sold through KAF.

In addition, KazAgroFinance JSC cooperates with manufacturers of KAMAZ-Engineering JSC, DAFA LLP, AVAGRO LLP, Kostanay Tractor Plant LLP, Kostanay Agromechanical Plant LLP, Composite Group Kazakhstan LLP.

Pursuant to the instructions of the Head of State on the introduction of stabilization measures to support small and medium-sized businesses in the context of the state of emergency of the KAF, on April 1, 2020, a special preferential program for financing agricultural producers to lease domestic equipment and vehicles - “Made in Kazakhstan”, was launched.

The program is aimed at reducing the financial burden on farmers due to the preferential financing rate of 6% per annum, long leasing periods of up to 10 years, as well as the provision of a grace period for paying leasing payments up to 1 year.

The agricultural producer can receive the leased asset without paying an advance, which is 0% due to state support in the form of investment subsidies, without paying any commissions and without providing collateral.

Acceptance and consideration of applications for financing of KazAgroFinance JSC is carried out in a simplified manner based on electronic copies of an abbreviated package of documents.

The implementation of this program will not only provide significant support to agricultural producers and contribute to the country's food security, but also positively affect the development of domestic engineering.

In addition, a number of additional measures have been taken to support farmers during the state of emergency.

The Company provides deferrals to small and medium-sized businesses until June 15, 2020, not only under loan agreements, as determined by the decision of the Agency for Regulation and Development of the Financial Market for banks and organizations engaged in certain types of banking operations, but also made an independent decision to grant deferrals for financial leasing agreements without accrual of forfeits. So, as of April 21, 2020, KazAgroFinance JSC received 171 requests for deferred payments in the amount of 2.59 billion tenge; applications for the amount of 630 million tenge have already been approved.

Applications are accepted by both the Central Office and the KAF branches located in all regions of the country.

Contact phones: 8- (7171) 59-28-80, 8-776-124-77-99