Download Preparation to spring sowing and harvesting works for

Preparation to spring sowing and harvesting works of “KazAgro” Holding” for 2013
Theses of the Chairman of the Executive Board for “Spring sowing and harvesting works of
“KazAgro” Holding for 2013” at regional meeting in Petropavlovsk city (March 28, 2013).
Dear participants of the meeting!
Let me inform You about the Holding activities for preparation to spring sowing.
In the current year the Holding for spring sowing plans to direct about 78.3 billion tenge from all
sources.
Operators for assets distribution are defined subsidiary companies of the Holding.
Through Agrarian credit corporation it is planning:
from assets of budget loan to direct 39 billion tenge at rate 5% per annum for direct financing of
agricultural producers under bank guarantees with term up to December 1, 2013, up to March
31, 2014 at rate 7% per annum.
Reference: necessity of this product is conditioned by season price fluctuations for agricultural
products. The most profitability is in spring, in the period of the maximum increase of price.
Under the existing scheme, borrowers – agricultural producers are forced to make mass sell-off
in the period of low prices for repayment of liabilities before creditors, and thereby deepening
price position at the market.
from own assets to direct 4 billion tenge for lending of agricultural producers through the system
of loan associations at rate not more than 9% per annum with term up to 18 months.
To support small agricultural producers through the system of microlending the Fund for
financial support of agriculture it will be directed 1.6 billion tenge including:
from assets of budget loan 1 billion tenge – for lending of microlending organizations for further
financing of agricultural producers, at rate of 4% per annum with term not more than 10 months
(microlending organizations lends final borrowers at rates not more than 8% per annum);
600 million tenge – for direct microlending under program “Yeginzhay” from own assets of FFSA
at rate 9.5% per annum with term up to 36 months.
In the current year Food corporation plans to direct more than 26 billion tenge for grain
purchase including:
13.75 billion tenge for grain purchase (based on 20000 tenge per 1 ton) into the state resources
through spring-summer financing (if guarantee of second-tier bank is available) and through
direct purchase in autumn from budget assets.
Reference:
The draft of the resolution of the Government of the Republic of Kazakhstan “On grain purchase
to state resources from the yield of 2013” for grain purchase to state resources from yield of
2012 the sum of budget assets is defined in amount of 13 750 million tenge including:
-
Through spring-summer financing in amount of 6 875 million tenge (if guarantee of
second-tier bank is available);
In autumn period in amount of 6 875 million tenge.
Cash assets not used to finance spring sowing will be used for grain purchase in autumn.
According to the existing practice in September – October a resolution of the Government of the
republic of Kazakhstan is issued with establishing purchasing prices for wheat of Triticum
aestivum L. of the 3rd class, purchased to the state resources.
In addition, in agreements closed with agricultural producers, term of grain supply is provided till
December 1 of the current year.
FCC repays budget assets allocated for grain purchase of the current year yield, till December
20 of the next year.
13 billion tenge for forward purchase of grain from agricultural producers through springsummer financing under guarantees of social-entrepreneurship corporations, based on 6
thousand tenge for 1 ha of cultivated area.
To participate in the program of forward purchase of grain from agricultural producers,
applications may be given to Coordination board established by Akimat which would approve
list of agricultural producers for financing.
It should be noted that agricultural producers with unpaid past due debt on support programs
implemented by Food corporation earlier, cannot be included to the mentioned list.
Along with it, agricultural producers till May 1, 2013 may implement their obligations under
financing agreements of 2012 under guarantees of social-entrepreneurship corporations and be
participants of the program.
7 billion tenge – placement of own/attracted assets of FCC, ACC. By resolution of the state
committee the placement is approved from assets of budget loan, own/attracted assets of the
Holding subsidiaries, used for financing agribusiness entities or for prolongation of their
obligation before the Holding subsidiaries on loans granted, for aims corresponding to actions
for support of agribusiness entities for spring sowing and harvesting.
In meantime, KazAgroFinance implements applications selection for leasing of agricultural
machines for spring sowing.
Totally KazAgroFinance plans to direct about 9.5 billion tenge for this (in 2012 – 6.9 billion
tenge).
At present, agreements are closed for total amount of 3.2 billion tenge (including in the NorthKazakhstan region – 502.5 million tenge).
Please note that under program “Agribusiness-2020”, it is introduced an instrument of fee rate
subsidizing for agricultural machines leasing for 7%. Thus, fee rate for leasing of agricultural
and special machines in KazAgroFinance with account of subsidizing will be 5.8%. Term of
subsidizing is 3 years with possibility of its prolongation up to 7 years.
At present the Holding implements work for financing of agricultural producers for spring sowing.
As of March 27, 2013 subsidiary organization of the Holding received 450 applications for total
amount of 53.5 billion tenge including:
-
244 application approved for total amount of 24.5 billion tenge,
153 application financed for total amount of 4.31 billion tenge.
It should be noted active work of agricultural producers of the North-Kazakhstan region in this
direction.
Thus from the beginning of the year, the Holding received 103 application for total amount of
12.1 billion tenge, including 73 application approved for amount of 9.8 billion tenge, 49
application financed for amount of 3.5 billion tenge (82% of total amount of financing of spring
sowing).
Reference: under program “Yeginzhay” on the North-Kazakhstan region 6 microloans were
given for amount of 24.4 million tenge, through loan associations on the North-Kazakhstan
region 41 application was financed for amount of 546.4 million tenge, from budget loan through
ACC 3 billion tenge were given on 2 applications.
Work is commencing.
Thank You for attention!