Kazakh Development Bank to allocate more than $38 bln for lending

ASTANA (CIHAN)- The Development Bank of Kazakhstan (DBK) signed a loan agreement with JSC “Halyk Bank” to provide seven billion tenge (182.01 tenge = 1 USD) fo lending of private businesses facilities.

The contract was signed within the framework of the program for supporting Kazakhstan’s industrial-innovative development, by funding second-tier banks, DBK press service said.

The report noted that thereby the Kazakh Development Bank, within the framework of the program, allocated some 45 billion tenge to six Kazakh commercial banks for lending private entrepreneurship.

JSC Bank CenterCredit received 11 billion tenge, JSC Tsesnabank – 10 billion tenge, JSC Kazkommertsbank- 2 billion tenge, SB JSC Sberbank – 11 billion tenge, SB Alfa-Bank – 4 billion tenge and JSC Halyk Bank of Kazakhstan- 7 billion tenge.

As of April 10, Kazkommertsbank has financed projects worth 685 million tenge, Tsesnabank – 318 million tenge. Furthermore, more than 20 projects worth over 23 billion tenge are on the approval stage of the second-tier banks which cover such industries as machinery, metallurgy, chemicals and petrochemicals, food industry.

The Development Bank of Kazakhstan’s program, the launch of which was announced in December 2013, expands the access of private enterprises in a relatively “long” (up to five years) and “cheap” loans in tenge. DBK lends to banks at 7.9 percent per annum, while the nominal rate should not exceed 11.5 per cent per annum for business. Loan amount per borrower makes up from 500 million to 4.5 billion tenge.

JSC Development Bank of Kazakhstan – National Institute for the modernization and development of non-oil and infrastructure sectors of the economy of Kazakhstan was established in 2001. The main activities of the bank are development of industrial infrastructure and manufacturing industries, encouragement of foreign and domestic investment into the country`s economy.(CihanTrend az)