Asian Bank for Development will prodive Kazakhstan with $500 million for support of SME subjects

/IRBIS, May 12, 2011/ - Today, Minister of Economic Development and Trade of the Republic of Kazakhstan Kairat Kelimbetov, Chairman of the Management Board of Entrepreneurship Development Fund "Damu" Lyazzat Ibragimov and Vice President of Asian Development Bank's Zhao Xiaoyu signed the Framework Agreement on the financing of a $ 500 million to support SME in Kazakhstan. This was reported by press service of the Ministry of Economic Development and Trade of Kazakhstan. As indicated, the Framework Agreement on the financing involves multitranche financing of investment program to support SME, which is designed to help Kazakhstan diversify its economy and create jobs by developing the SME sector. It is noted that since the spring of 2010 on the initiative of the Ministry of Economy and Trade Development of the Republic of Kazakhstan the works on raising the Asian Development Bank to support the SME sector were implied. Attracted funds are the largest loan in the history of the ADB to develop the SME sector. As Kelimbetov noted, the Asian Development Bank is a strategic partner of country on development of key industries, particularly important for us in the post-crisis period. "Besides, this is the first loan of the International Financial Institutions, issued in local currency of the borrower and the first major non- governmental loan, given after the financial crisis, attracted by financial institutions in Kazakhstan, which will serve as a positive signal for foreign investors", - said the minister, whose words are given in the message According to the Program Fund "Damu" will receive funding from the ADB in several tranches, the first tranche of $ 150 million is planned to get to the end of May 2011. This will be a medium-term loan (5 years) at a fixed rate of tenge under the state guarantee for on-lending to participating banks in Kazakhstan. ADB undertook a Due Diligence pre-investment study of second-tier banks of Kazakhstan, on which results among the banks as partners in the project were selected Kazkommertsbank, Bank CenterCredit and JSC "Alliance Bank". This will help banks gain access to funds they need for SME lending. According to the policy of ADB, loans to SMEs will be provided at market conditions (currently on the market rate for lending SMSP composed of 14% per annum, it is expected that rate to final borrowers under the project will at this level). "Since the loan is issued in national currency, it would eliminate the currency and interest rate risks for banks, program partners and end- borrowers. Also, banks can better manage their liquidity, as the period of funding is the same or even higher than the average term of loans from STB to SME ", was - stated in the message. Loans from ADB funds will be implemented in all regions of Kazakhstan, with at least 40% of all loans, which will be issued by STB to SMEs should be placed outside of the cities of Almaty and Astana. There are no sector restrictions; at the same time, priority should be given to borrowers engaged in activities in accordance with the priorities of the Programme "Business Road Map 2020, approved by the Directive of the Government of the Republic of Kazakhstan dated April 13, 2010 # 301. [2011-05-12]