IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

Loan guarantee

On 6 April 2015 the Government of the President of the Republic of Kazakhstan issued Decree No. 1030. It has introduced the State Programme for Infrastructural Development 'Nurly Zhol' for 2015 -- 2019 (hereinafter referred to as "the Programme"). This report focuses on the industrial policy dimensions of this infrastructure programme. Since the Programme does not allocate concrete budget funds, but only projects them, it is classified by the GTA as amber, not implemented.
 
 
Industrial policy measures
Point 5.7 of the Decree State support for entrepreneurs 

In 2015, the National Fund is to allocate funds on advantageous terms to small and medium, as well as to big enterprises in the manufacturing sector. The interest rate is set at a maximumof 6% p.a.; the duration of any credits is at most 10 years. 
 
Points 5.9--5.11 of the Decree: Anti-crisis measures 
Point 5.9 of the Decree
Development of selected domestic mechanical engineering products (cars, helicopters "Eurocopter" and passenger cars "Tulpar Talgo") through leasing and credit financing, as follows:
 
Credit state support for purchases from domestic automakers
Credit contract maturity: 5 years
Credit interest rate: not more than 6% p.a.
Currency: tenge

Leasing support for domestic cars
Leasing contract maturity: 3--5 years
Leasing interest rate: not more than 4% p.a.
Currency: tenge

State support for leasing of helicopters 'Eurocopter'
Leasing contract maturity: 20 years
Leasing interest rate: not more than 4% p.a.
Currency: tenge

State support for purchases of passenger cars "Tulpar Talgo"
Credit contract maturity: 20 years
Credit interest rate: not more than 6% p.a.
Currency: tenge
State support for passenger cars "Tulpar Talgo"
Leasing contract maturity: 20 years
Leasing interest rate: not more than 4% p.a.
Currency: tenge
Import-substitution and increased trade competitiveness are indicated as motivation for these state measures.
 
Point 5.10 of the Decree
Pre-export and export funding

An explicit condition for state financing is export of domestically-produced goods and import of products for circulation in Kazakhstan (implicitly meaning, not mentioned in the Decree, that they may be be used for pre-exports). The state is to support exporters with credits with the following conditions:
Credit contract maturity: 20 years
Nominal interest rate: not more than 6% p.a.
Currency: tenge or other currency
 
Point 5.11 of the Decree
State support for agricultural producers

The state is to support agro-producers with subsidised/reimbursed interest rates on loans and lease obligations. As target goods are mentioned eggs, milk, meat, as well as lifestock.
 
Concrete budget allocations
The National Fund is to support small and medium entrepreneurs (SMEs) with 50 billion tenge in 2015, and big enterprises with 50 billion tengein 2015 (ca. 270 million USD each of them). There are no explicit restrictions in terms ofmanufacturing sub-sectors of the economy in which the SMEs should operate. However, it may be expected that priority will be given to SMEs that operate in the manufacturing sub-sectors from the list of sectors that were defined as strategic in Decree No. 301 of 13 April 2010 of the Government of the Republic of Kazakhstan.
 
The National Fund is to finance the anti-crisis measures in 2015 and 2016 as follows:

  • for development of the domestic mechanical engineering - 35 billion tenge (ca. 189 million USD), distributed as follows:
    • car production -- 20 billion tenge;
    • production of helicopters -- 10 billion tenge;
    • production of passenger cars -- 5 billion tenge;

 

  • pre-export and export funding -- 35 billion tenge (ca. 189 million USD) in 2015 and 15 billion tenge (ca. 81 million USD) in 2016
  • state support for agro-producers in 2015 -- 20 billion tenge (ca. 108 million USD), distributed as follows:
    • subsidised interest rates on loans and lease obligations in the framework of the financial recovery of agribusiness entities -- 7 billion tenge;
    • reimbursement of interest rates on credits (leasing) for support of agriculture -- 1.5 billion tenge;
    • development of livestock breeding, increasing the productivity and quality of livestock products -- 11.5 billion tenge.

 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

023 Eggs of hens or other birds in shell, fresh
0407 Birds' eggs, in shell, fresh, preserved or cooked.
040711 Of fowls of the species Gallus domesticus
040719 Other
040729 Other
211 Meat & meat products
0202 Meat of bovine animals, frozen.
020210 Carcasses and halfcarcasses
020230 Boneless
0203 Meat of swine, fresh, chilled or frozen.
020322 Hams, shoulders and cuts thereof, with bone in
020329 Other
0205 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen.
020500 Meat of horses, asses, mules or hinnies, fresh, chilled or frozen.
0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen.
020622 Livers
0207 Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen.
020712 Not cut in pieces, frozen
020713 Cuts and offal, fresh or chilled
020714 Cuts and offal, frozen
215 Animal fats
0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked.
020910 Of pigs
221 Processed liquid milk, cream & whey
0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter.
040120 Of a fat content, by weight, exceeding 1 % but not exceeding 6 %
040140 Of a fat content, by weight, exceeding 6 % but not exceeding 10 %
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.
040410 Whey and modified whey, whether or not concentrated or containing added sugar or other sweetening matter
222 Other dairy products
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter.
040210 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 %
040221 Not containing added sugar or other sweetening matter
040291 Not containing added sugar or other sweetening matter
040299 Other
0403 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa.
040310 Yogurt
040390 Other
0405 Butter and other fats and oils derived from milk; dairy spreads.
040510 Butter
040520 Dairy spreads
040590 Other
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)
870290 Other
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
870490 Other
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile wor
870510 Crane lorries
870520 Mobile drilling derricks
870530 Fire fighting vehicles
870540 Concretemixer lorries
870590 Other

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