On February 19, Parliament Senate of the Republic of Kazakhstan held a round table discussion on the implementation of the "Employment-2020" in the context of small and medium businesses. Chairwoman of the Fund "Damu" Lyazzat Ibragimova has made a speech. In her speech, she outlined the role of financial institutions, and Fund "Damu" in particular in the implementation of this program.
According to the head of the Fund "Damu", one of the important mechanisms to reduce unemployment and increase the skills of employed citizens of the republic is the “Business Road Map 2020” (“BRM-2020”). The main areas of the program are support of new business initiatives, reducing currency risk of entrepreneurs, and strengthening entrepreneurial capacity.
In the field of business support initiatives and reduction of currency risk Fund “Damu” works with 25 partner banks, and 9leasing companies, as the financial agent of subsidizing interest rates on loans and guarantees of the banks to business. In fact, the program “BRM-2020” entrepreneurs get preferential loans with reduced interest rates and without sufficient collateral.
Currently subsidies support has been received by 2357 business loans totaling about 539 billion tenge. Guarantees was given to 115 projects worth 16.2 billion tenge.
"The growing interest in these instruments on the part of small and medium business allows us to predict the economic and social effects of the implementation of the “BRM-2020” - said Lyazzat Ibragimova. - And, as statistics shows, it is beneficial to small and medium enterprises, as it is beneficial for the state. In particular, subsidies for interest rates on loans lead to an increase in production by small and medium-sized businesses, and indirectly lead to an increase in tax revenues paid by “BRM-2020”participants. Thus, over the period of the program “BRM-2020”, amount of subsidies paid to the employers was 30.5 billion tenge, while the amount of tax revenue from the participants of the program was 58 billion tenge ".