AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 5 May 2016, the Kazakhstani state company Kazagrofinance, a daughter company of the Kazakhstani state company Kazagro, signed with the Government of the Republic of Belarus a contract 'On the conditions for provision the lessees of goods, produced in the Republic of Belarus, in order they to be purchased in the Republic of Kazakhstan.'
Under the terms of this contract, the Government of the Republic of Kazakhstan partially compensates to Kazagrofinance the due leasing payments under contracts for financial leasing, signed until the end of 2016 with a duration of no more than five years. Produced in Belarus agricultural machinery and appliances can be purchased under this interstate trade financing scheme. However, a concrete list of goods, subject to leasing financing, has neither been disclosed nor identifiable from other sources. The amount of compensation of leasing payments is in the amount of 2/3 of the official refinancing rate established in the Republic of Kazakhstan. Given the fact that as of the period in which this contract was signed the refinancing rate of the National Bank of the Republic of Kazakhstan was 5.5%, the subsidised rates by the Government of the Republic of Belarus for Kazakhstani farmers were at the amount of 3.67%.
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