In April 2015, the government of Kazakhstan announced a change to private-sector financial support.



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Ministry of Agriculture of the Republic of Kazakhstan Order No. 9-1/320 dated 9 April 2015, Об утверждении Правил субсидирования процентной ставки по кредитным и лизинговым обязательствам в рамках направления по финансовому оздоровлению субъектов агропромышленного комплекса (On approval of the rules for subsidizing interest rates on credit and leasing obligations as part of the direction for the financial recovery of agro-industrial complex entities),

Inception date: 09 Apr 2015 | Removal date: open ended

Interest payment subsidy

On 9 April 2015 the Ministry of Agriculture of the Republic of Kazakhstan approved rules for subsidized interest rates of credit and leasing obligations of the agricultural sector as part of measures for its financial recovery (Order No. 9-1/320).
Order No. 9-1/320 ("the Order") forms part of the state programme for development of the agricultural sector of the Republic of Kazakhstan for the period 2013-2020 'Agribusiness -- 2020' (see the related GTA report No. 11099). The general condition stipulated in article 11 of part 2 of the Order is subsidisation of the interest rate on leasing and credit obligations, by decreasing it to 7% p.a. in tenge-denominated obligations and to 5% p.a. in foreign currency-denominated obligations. Annex No. 3 of the Order contains a list of priority activities for subsidisation:

  • Rice cultivation
  • Growing of vegetables, melons, roots and tubers
  • Breeding of dairy breeds of cattle
  • Breeding other breeds of cattle and buffalos
  • Breeding of horses and other hoofed species
  • Breeding of camels and camelids
  • Breeding of sheep and goats
  • Breeding of pigs and piglets
  • Breeding of fish
  • Poultry breeding
  • Breeding of other types of animals
  • Freshwater fisheries
  • Processing and preserving of meat
  • Processing and preserving of poultry meat
  • Production of products from meat and poultry
  • Processing and preserving of fish, crustaceans and molluscs
  • Processing and preserving of potatoes
  • Processing of raw cotton fibre (primary processing)
  • Meat production on an industrial basis
  • Production of eggs and egg powder
  • Production of fruit and vegetable juices
  • Other types of processing and storage of fruit and vegetables
  • Manufacture of oils and fats
  • Manufacture of margarine and similar animal fats
  • Production and processing of milk and production of cheese
  • Production of products of the milling industry
  • Manufacture of bread; fresh pastry, cakes and pastries
  • Production of pasta
  • Production of sugar
  • Production of baby food and dietary food
  • Growing of cereals (except rice), leguminous crops and oil seeds
  • Warehousing and storage of grains and oilseeds
  • Cultivation of other seasonal crops
  • Cultivation of grapes
  • Cultivation of pome and stone fruit
  • Growing of other types of fruit trees, bushes and nuts
  • Cultivation of crops for the production of beverages
  • Production of ice cream
  • Manufacture of rusks, biscuits, pastry goods, cakes, pastries, pies and biscuits intended for long term storage
  • Production of prepared foods and semi-finished products
  • Manufacture of prepared feeds for farm animals
  • Manufacture of prepared feeds for pets
  • Wool processing
  • Processing of raw hides.

Annex No 3 was used for identification of the affected sectors.
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.