Farmers affected by unfavorable weather conditions in 2023 will have loans received for leasing equipment and livestock and for field work extended. The Ministry of Agriculture spoke about the terms of the extension.
Previously, the Ministry of Agriculture made changes to the Rules for subsidizing interest rates when lending to agricultural entities, as well as leasing for the purchase of farm animals, machinery and technological equipment. The period for granting a deferment on payment of the interest rate and (or) repayment of the principal debt has been increased from 10 to 24 months due to the occurrence of aggravating circumstances for the borrower.
“Previously, as part of measures to carry out the extension and preferential program for lending for spring field and harvesting work “Ken Dala”, a restructuring of the budget loan was carried out, which made it possible to extend loans to program participants without the application of penalties. At the same time, if it is necessary to prolong loans outside of the above-mentioned restructuring of the budget loan, it is envisaged to carry out the prolongation by replacing budget funds with the financial institution’s own or borrowed funds. At the same time, the financing rate for such extended loans is formed in market conditions and can exceed 19-20%,” explained the Ministry of Agriculture.
At the same time, in order to reduce the remuneration rate for the farmer, the rules provide for the possibility of subsidizing contracts extended at the market rate. Accordingly, farmers will have the opportunity to reduce the remuneration rate to 6%, and the difference will be paid by the state.
The corresponding order of the Ministry of Agriculture passed state registration on December 29, 2023 and comes into force ten calendar days after the day of its first official publication.
According to the Ministry of Agriculture, in general, in 2024, 87.2 billion tenge of budget funds are allocated in the budgets of local executive bodies for the purpose of subsidizing remuneration rates under this program.