Subsidiary Organization VTB Bank (Kazakhstan) to support SME in the amount of KZT9 bn

02.04.20, 16:58
/KASE, April 2, 2020/ – Subsidiary Organization VTB Bank (Kazakhstan) (Almaty), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release of April 2, 2020: quote The Bank has signed a tripartite agreement with the Kazakhstan Sustainability Fund JSC and the Agency of the Republic of Kazakhstan on regulation and development of financial market on participation in the Program of concessional lending to small and medium enterprises. The allocated limit for the bank is 9 billion tenge. Under this program, VTB Bank (Kazakhstan) will issue preferential loans to businessmen affected by the state of emergency at a nominal interest rate of up to 8% per annum. Commissions for the provision and maintenance of easy loans will not be charged. - The coronavirus pandemic posed a major setback to the country's small and medium-sized businesses. Today, the state is taking prompt comprehensive measures to provide assistance to Kazakhstani entrepreneurship during this tough time. The new support program is a serious step in this direction, - says Dmitry Zabello, Chairman of the Management Board of VTB Bank (Kazakhstan). – VTB is aware of the seriousness of the situation and, of course, we will also take part in the program of concessional lending to small and medium-sized enterprises in order to be useful to our customers at this time. Representatives of SMEs will be able to take part in the program with confirmation of their financial condition deterioration in as a result of the introduction of state of emergency. The loan is issued for up to 12 months. The limit per one borrower from among legal entities is up to KZT 3 bln, and for individual entrepreneurs – up to KZT 50 mln. Intended use of the loan is operating assets replenishment. Entrepreneurs with debt on loans over 90 days, as well as non-residents of the republic, cannot participate in the program. In addition to participating in the preferential lending program, VTB Bank (Kazakhstan) provides support to SMEs affected by the state of emergency in the form of principal repayment and interest on existing loans deferral until June 15, 2020. In addition, the bank has canceled all fines and penalties for late payments on principal and interest in the specified period to such customers. unquote [2020-04-02]