Damu Fund started accepting applications from SMEs for subsidies.
Particular attention is paid to representatives of medium-sized businesses for whom access to longer money is important. For them, an alternative channel for attracting financing from private and institutional investors on the KASE and AIFC platforms is provided as part of the guarantee instrument.
Damu Entrepreneurship Development Fund JSC started implementation of the National Entrepreneurship Development Project for 2021-2025 (hereinafter – National Project), developed by the Government of Kazakhstan represented by the MNE, in accordance with the instruction of Kassym-Jomart Tokayev, the Head of State.
Damu Fund began accepting applications for subsidizing a portion of the interest rate on loans under National Project in all regional branches.
National project united earlier state program of business support and development “Road map of business-2025” and “Economy of simple things”. State support will be aimed primarily at supporting micro and small businesses. The government also decided to support priority sectors of economy and SME development in mono-small towns.
In the first block of National Project it is possible to subsidize loans/microcredits within the Regional Program to support entrepreneurs in socially vulnerable regions or during the introduction of the state of emergency/emergency situation, or in other cases from the local budget, without sectoral restrictions.
Damu Fund cooperation will be in close relationship with local executive bodies and will be directly oriented to the potential and capabilities of the region. Thanks to this innovation, there will be an additional tool to support private businesses.
National project will be aimed at supporting micro-small and medium businesses both through the instrument of subsidizing and through the instrument of guaranteeing. The participation of large businesses is excluded from the program, and a counter obligation is established for the participants according to the performance criteria in terms of increasing the number of jobs.
Thus, the following conditions are adopted for the projects implemented in the cities of national importance / regional centers:
– on a subsidizing tool set the maximum amount of credit/leasing up to 3 billion tenge;
– subsidies and guarantees are subject to projects in priority sectors of the economy, such as manufacturing, services, etc. (63 OKED).
Subsidies remain unchanged for loans to banks and leasing companies, where Damu Fund will subsidize up to 6% per annum on loans with a rate not exceeding the prime rate of the National Bank of Kazakhstan + 5% per annum.
The third block of changes in the National Project touched projects in single-industry towns. Under the subsidies and guarantees in mono- and small towns and rural settlements, the following conditions now apply:
– subsidizing the interest rate of interest on the loan up to 5%, which will be paid by the entrepreneur himself;
– SME projects without sectoral restrictions will be eligible for subsidies and guarantees;
– under the instrument of subsidizing the maximum amount of credit/leasing – KZT 1.5 billion;
– under the instrument of guarantee, the maximum loan amount – KZT 360 million;
– subsidizing and guaranteeing loans aimed at replenishing working capital for trading activities in the amount of up to KZT100 million.
To subsidize refinanced loans/leasing, the term of the primary loan is up to 2 years. Also, on projects subsidizing excluded own participation of entrepreneurs on loans over 180 million tenge.
Another innovation in the National project: leasing companies can now act as lenders in the guarantee instrument.
For the first time introduced a tool guarantee through the stock market, which was developed jointly with the Agency of the Republic of Kazakhstan on Regulation and Development of the Financial Market (AFR) and the Kazakhstan Stock Exchange KASE. Thus, special attention is paid to representatives of medium-sized businesses, which are important for them to have access to more long money. For them an alternative channel of attracting funding of medium-sized businesses at the expense of private and institutional investors on the platforms of KASE and MFCA in the framework of a guarantee instrument is envisaged. Guaranteeing is possible for secured debt bonds in the amount of up to KZT5 bn. with application of Damu Fund guarantee up to 50%.