ANNOUNCEMENT 09 Apr 2015
In April 2015, the government of Kazakhstan announced a change to private-sector financial support.
NUMBER OF INTERVENTIONS
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), http://adilet.zan.kz/rus/archive/docs/V1500010763/09.04.2015
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:
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.