The program is designed to promote small and medium enterprises (hereinafter -SME) in the Republic of Kazakhstan within the funds provided by the international financial institution – the Asian Development Bank ( hereinafter - ADB).
The basis for the development of the Program is the message of the President of the Republic of Kazakhstan Nursultan Nazarbayev to the people of Kazakhstan from January 29, 2010 "New Decade- New Economic Growth - New Opportunities for Kazakhstan."
Lending of ADB funds will be implemented in all regions of Kazakhstan. At least 40 % of all loans that will be issued to SMEs by a partner Bank must be placed outside the cities of Almaty and Astana.
There are no restrictions on industries of the economy. However, at the same time it is assumed that priority will be given to the SMEs , operating in accordance with the list of priority sectors of the " Business Roadmap 2020" Program , approved by the resolution №301 of the Government of Kazakhstan on April 13, 2010.
The program is implemented by the Fund placing funds on certain conditions in the Partner Banks for the further lending to SMEs .
Total funding within the Program is $500 million (equivalent to 74 billion tenge ). Funding will be provided in tranches in the national currency . The number and size of the tranches can be changed by ADB.
Starting 2011, lending to SMEs will be provided from ADB 1st – loan ranche , which is 22.2 billion tenge.
Following are the Partner Banks for the implementation of the 1st - tranche: "Alliance Bank " JSC , " Bank CenterCredit" JSC and "Kazkommertsbank" JSC.
Basic conditions of lending to SMEs by the Partner Bank :
- Targeted segment - small and medium enterprises , which are established in accordance with the laws of the Republic of Kazakhstan;
- Purpose of the loan :
- Working capital replenishment ;
- Acquisition of new and modernization of fixed assets ;
- Refinancing of existing loans.
- The maximum limit for a single Final borrower – 440 mln. tenge. Granting of loans to the Final borrowers is prohibited in amount exceeding 440 mln. tenge and/ or group of affiliated SMEs as a Partner Bank or several Partner Banks, within the current Program ;
- Loan term:
- For replenishment of working capital - up to 36 months;
- For the purchase of new and modernization of existing fixed assets - up to 60 months .
- Grace period :
- For repayment of remuneration - not more than one (1 ) year;
- For repayment of the principal debt - not more than three (3 ) years ;
- The interest rate on the loan is set independently by a Partner Bank , considering the market conditions ;
- Loan currency – tenge;
- Other funding conditions are set by a Partner Bank independently .
More detailed information on Loan Program can be obtained at the regional branches of " Entrepreneurship Development Fund “ Damu” JSC and the Partner Banks.