AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
According to a press release dated 7 August 2015, the Development Bank of Kazakhstan JSC (a subsidiary of 'Baiterek' Holding) granted to Bayan Sulu JSC a loan at the amount of 2 billion tenge (ca. 10.8 million USD) and maturity of 5 years. It is allocated under advantageous conditions within the framework of "Nurly Zhol" -- the State Programme for Infrastructural Development for 2015 -- 2019 (related GTA Report No. 10937) of the country, one of which goals is to support exports of domestically manufactured goods.
Bayan Sulu JSC is one of the largest companies in the Republic of Kazakhstan producing confectionery products (for example, caramel, candies, toffees, marmalades , marsh-mallows, biscuits, waffles). The Russian Federation accounts for 79.9% of its exports. The rest of the CIS region, China and Germany account for 20.1% of its exports.
The loan, allocated under advantageous conditions, is to be used to purchase raw products for production of confectionery products (sugar, cacao beans, syrup, flour, fats), to be used to produce for export finished confectionery products mainly for the Russian Federation.
'The financing at advantageous terms will enable us to ensure distribution of products to the external markets, as well as, despite external factors to raise the volumes of exports of confectionery products. Thanks to the support from the government, Baiterek Holding, Kaznex Invest, we have received relatively cheap and affordable financial funds for further development of our company', - said the President of Bayan Sulu JSC Timur Sadykov.
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.
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