IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: No inception date

State loan

On 23 April 2015 the Government of Kazakhstan approved Decree No. 271. It constitutes a between the Government of Kazakhstan and the National Bank of Kazakhstan for financing of domestic producers and exporters. The financing of the mentioned beneficiaries is to be performed through the 'Development Bank of Kazakhstan' (DBK) and its daughter company 'BRK-Leasing' in the period 2015-2016. The state support is to be either in the form of leasing or loans.
Decree No. 271 outlines three direction of state support, namely:

  • State support of domestic automakers;
  • State support for the production of passenger cars;
  • State support of exporters.

 
State support of domestic automakers
Financing

Mechanism: signed agreement between DBK and commercial banks as a first step. The parameters of the allocated credits by the commercial banks as a second step are:

Total limit of the financing: 15 billion tenge (ca. 81 million USD)
Credit contract maturity: 20 years
Credit fee: not more than 1% p.a.
Currency: tenge
 
Leasing
Mechanism: signed contract between DBK and 'BRK-Leasing' as a first step. The parameters of the the agreement between them include:

Total limit of the financing: 5 billion tenge (ca. 27 million USD)
Credit contract maturity: 20 years
Credit fee: not more than 0.25% p.a.
Currency: tenge
On a second stage 'BRK-Leasing' acquires vehicles (except for agricultural machinery and appliances) from local manufacturers (hence, in addition to bail-out features, it contains a localisation requirement as per the GTA criteria, although no concrete percentage of local content is mentioned.)
Total leasing limit: not mentioned
Leasing contract maturity: from 3 to 5 years
Nominal leasing fee: not more than 4% p.a.
Currency: tenge
Leasing advance payment: 30% of the value of the object of the leasing contract
 
State support for manufacturing of helicopters 'Eurocopter'
Mechanism: signed contract between DBK and 'BRK-Leasing' as a first step. The parameters of the the agreement between them include:

Total limit of the financing: 10 billion tenge (ca. 54 million USD)
Credit contract maturity: 20 years
Credit fee: not more than 0.25% p.a.
Currency: tenge
On a second stage 'BRK-Leasing' provides financial support under the following conditions:

Lessor: 'BRK-Leasing'
Lessee: airline company 'Kazaviaspas' or other companies that fulfil the requirements of 'BRK-Leasing' (not disclosed in this decree).
Manufacturer: 'Eurocopter Kazakhstan Engineering'
Total leasing limit: 10 million tenge (ca. 54 million USD)
Leasing contract maturity: 20 years
Nominal leasing fee: not more than 4% p.a.
Currency: tenge
 
State support for the production of passenger cars
The parameters of the the financing provided by DBK to the company Temir Zholi (Kazakhstan's National Railway Company) are:

Total limit of the financing: 5 billion tenge (ca. 27 million USD)
Credit contract maturity: 20 years
Credit fee: not more than 2% p.a.
Currency: tenge
 
State support of exporters
An explicit condition for state financing is export of domestically-produced goods and import of products for circulation in Kazakhstan's processing industry. Both credits and leasing deals are to be executed under the following conditions:
Total limit of the financing/leasing: not mentioned for individual deals but as a global sum of 35 billion tenge (ca. 189 million USD) for 2015 and 15 billion tenge for 2016 (ca. 81 million USD).
Credit contract maturity: 20 years
Nominal interest rate: not more than 6% p.a.
Currency: 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

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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