ANNOUNCEMENT 13 Feb 2009

In February 2009, the government of Kazakhstan announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 13 Feb 2009 | Removal date: open ended
Still in force

State loan

On 13 February 2009 the Government of the Republic of Kazakhstan approved Resolution No. 148 'On some measures to support small and medium-sized businesses and to stabilise the situation on the properties' market'. 
It contains the following GTA relevant content:

  • The Joint Stock Company "National Welfare Fund "Samruk-Kazyna" is to sign an agreement with the Joint Stock Cmpany "Entrepreneurship Development Fund "Damu". Its purpose is to grant to 'Damu' a credit in the amount of 120 billion tenge (ca. 988 million USD) to be used for lending to small and medium-sized enterprises (SMEs).
  • A list of banks and limits of placement of funds for SME financing is issued.
  • A share of 30% of the total financing is to be used for financing of projects for processing of agricultural products and food production.
  • Since there are no explicit restrictions in which other sectors of the economy the SMEs should operate, it may be expected that priority will also be given to SMEs that operate in the sectors that are defined as strategic in Decree No. 301 of 13 April 2010 of the Government of the Republic of Kazakhstan.
  • The credit contracts contain protectionist elements. For example, an upper bound of the interest rate.

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 SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A