In the sphere of the agribusiness, state support for entrepreneurship is carried out by introducing preferential taxation for the subjects of the agribusiness, providing subsidies, and providing preferential loans for spring field and harvesting.
The Ministry of Agriculture of the Republic of Kazakhstan provides for the following types of state support:
- Subsidies for reimbursement of expenses incurred by the subject of agriculture, when investing;
- Subsidizing interest rates on loans and leasing of technological equipment for the purchase of farm animals, as well as leasing of agricultural machinery.
The organization that implements the state policy to stimulate the industrial development of the agro-industrial complex is the "Baiterek" National Management Holding" JSC and its subsidiaries:
"Agrarian Credit Corporation" JSC was founded in 2001.
Currently, the Corporation is a large financial institution operating in the field of agribusiness development, implementing credit programs in priority areas for the development of agricultural production, defined as part of the State Program for the Development of the Agro-Industrial Complex of the Republic of Kazakhstan for 2017-2021, approved by the Decree of the President of the Republic of Kazakhstan on February 14, 2017, №42.
The mission of the Corporation is to promote the sustainable development of the agro-industrial complex of the Republic of Kazakhstan by forming an affordable and effective financing system through the involvement of private financial institutions and increasing the competence of the agro-industrial complex entities.
The Corporation is a part of "KazAgro" National Managing Holding and carries out the large-scale work for performing its activity in 16 branches and 1 representative office in all regions of Kazakhstan.
Since 2001, 202 credit partnerships have been established in Kazakhstan, bringing together about 20,000 agricultural producers. Over 17 years of existence through credit partnerships, farmers have been granted more than 40 thousand loans in the amount of 288 billion tenge.
- The implementation of banking loan operations on the basis of an appropriate license;
- Participation in the implementation of programs to support the agricultural sector through lending;
- Attracting domestic and foreign investment;
- Participation in the development and implementation of investment projects in the agro-industrial complex;
- Holding activity;
- Funding of financial institutions.
In December 2021, as part of the merger of the Fund for Financial Support of Agriculture with JSC Agrarian Credit Corporation, the functions of lending to microbusiness, an operator in the field of insurance in the agro-industrial complex, and a rural mortgage agent were transferred as part of the project “With a diploma to the village!”.
KazAgroFinance JSC was established on December 28, 1999 in accordance with Decree of the Government of the Republic of Kazakhstan No.1777 ‘On Some Issues of Agriculture’ dated November 24, 1999 for facilitating the solution of one of the main challenges in agriculture – technical fleet renewal.
The Company is a part of KazAgro National Managing Holding .
In its turn, the Ministry of Agriculture of the Republic of Kazakhstan is a Sole Shareholder of the Holding. The Company carries out its activity based on the Law of the Republic of Kazakhstan ‘On Joint Stock Companies’ and in accordance with the best corporate management practice. The Company serves for the benefit of the Sole Shareholder, is accountable to the Sole Shareholder and the Board of Directors.
is to facilitate the renewal of the agricultural machinery and equipment in the Republic of Kazakhstan by providing the quality and competitive leasing services.
KazAgroFinance JSC is a national leader at the Kazakhstani leasing market with high investment attractiveness and the best partner for the agricultural sector entities in renewal of the agricultural machinery and equipment.
To implement statutory objectives the Company carries out the following activities:
- leasing activity in the agricultural industry;
- lending to AIC entities.
In all regions of Kazakhstan the company is represented by 14 branches. The Company has no subsidiaries.