Development Bank of Kazakhstan to provide KZT1.3 m of subsidies to Zapchast

/KASE, May 29, 12/ - JSC "Development Bank of Kazakhstan" (Astana), whose bonds are officially listed at Kazakhstan Stock Exchange (KASE), has provided KASE with the following press-release of May 29, 2012: quote JSC "Zapchast" will receive a subsidy on the DBK loan Over USD1.3 m will be earmarked for subsidizing the enterprise under the "Business Road Map" program The project of JSC "Zapchast" providing for the launch of a steel parts manufacturing unit in the city of Taraz (Project) will receive a 5 per cent subsidy on the interest rate on the loan of JSC "Development Bank of Kazakhstan" (DBK or Bank). The project worth a total of over KZT19 m was funded by DBK in 2008. The launch of a steel-melting unit at Zapchast's plant is supposed to be made in the second half-year of 2012. 156 new workplaces will be created. A reduction of the tax burden on the Project is provided for under direction "Entrepreneurial Sector Rehabilitation" of program "Business Road Map 2020" (Program)/ Part of payments on the loan of JSC "Zapchast" will be reimbursed under the Program over three years. A relevant subsidy agreement between the Bank and the borrower became effective in May 2012. On its part, the Bank has approved a financial rehabilitation plan of its own, changed the payments schedule in order to be included in the Program. The plant of JSC "Zapchast" was established in 1993 on the basis of Zhambyl plant of tractor spare parts. Currently, JSC "Zapchast" manufactures spare parts for railway vehicles and implements an investment project on manufacturing of steel parts. unquote [2012-05-29]