According to the memorandum, the Akimat of West Kazakhstan region will allocate 500 million tenge, as well as the "Damu" Fund - 500 million tenge for the implementation of the program of regional financing of small and medium-sized businesses. The funds will be allocated through second tier banks.
According to the program, there is no sectoral restrictions for areas of West Kazakhstan region. Purpose of the loan - for the purchase and modernization of equipment as well as entrepreneurs’ working capital financing. Credits available for enterprises operating in the priority sectors of the economy, as well as villages and first-time entrepreneurs.
The maximum loan amount is up to 50 million tenge. Interest rate – 7,5% per annum. Loan term - up to 84 months. Entrepreneurs that have received funding under this program are eligible to use guarantee tool from the Fund if collateral is insufficient to the Bank.
«This is the first Memorandum with Akimat of West Kazakhstan region as an additional source of financing for entrepreneurs. At present it is important for entrepreneurs to have funds for working capital, and modernization of production facilities on favorable terms at 7.5% per annum. Additionally, funding resource of the Fund and Akimat will help to create new small industries, new jobs and provide tax revenues to the regional budget. Such programs are well proven in Astana and Almaty cities. For instance, in Astana we are realizing the program «Astana ZhasStart» in cooperation with the capital’s Akimat, in Almaty city We are implementing a program "Zhibek Zholy" for a total amount of 4 billion tenge», - reported head of the Fund Kanysh Tuleushin at the signing ceremony.
In addition to Astana and Almaty, regional financing programs operate in Aktobe region Aktobe (for a total amount 900 million tenge) and Almaty regions (worth 3 bililion tenge). It is planned by the "Damu" Fund to sign a Memorandum with Akimat of South Kazakhstan, Kyzylorda as well as Kostanay regions.