According to the Resolution of the Government of the Republic of Kazakhstan No. 1039 dated November 6, 2007, On Approval of the Priority Action Plan for Stable Social and Economic Development of the Republic of Kazakhstan, starting from early 2008 the Fund is the operator to manage public funds under the Program of conditional investment of funds in the second-tier banks for further lending of small and medium enterprises.
The program of conditional placement of funds is one of the tools for implementing the government policies of financial support to SMEs in the Republic of Kazakhstan.
The Program is implemented through funding second-tier banks under specific (earmarked and restrictive) conditions for further lending of SMEs. One of the overriding principles for working with partner banks is a policy of non-interference in their internal procedures and loan processes, as well as banks’ full responsibility for the risks of decisions made.
The program is designed to improve the effectiveness of government measures of financial support to SMEs.
Financing of SMEs by partner banks under the program has no limitations in terms of types of activities aside from activities prohibited by the legislation of the Republic of Kazakhstan.