RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of March 19, 2020 No. 39

About approval of the Program of preferential crediting of subjects of entrepreneurship

According to Presidential decrees of the Republic of Kazakhstan of March 15, 2020 No. 285 "About introduction of emergency state in the Republic of Kazakhstan", on March 16, 2020 No. 286 "About measures for ensuring social and economic stability" and orders of the President of the Republic of Kazakhstan Tokayev K. K. for the purpose of implementation of measures of support of subjects of entrepreneurship, the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Program of preferential crediting of subjects of entrepreneurship.

2. To provide to development department of the financial market placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan within seven working days after its acceptance.

3. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Birtanov E. A.

4. This resolution becomes effective from the date of its acceptance.

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of March 19, 2020 No. 39

Program of preferential crediting of subjects of entrepreneurship

I. Introduction

1. International experience:

Due to the distribution of epidemic of koronavirusny infection (COVID-19) on the world, the governments, Central Banks and regulators of various countries take complex measures for support of subjects of entrepreneurship.

In the Russian Federation (further – the Russian Federation) is offered to expand programs of preferential crediting for support of small and medium business against the background of situation with spread of koronavirusny infection (COVID-19). The Government of the Russian Federation for support of economy will create anti-recessionary fund in the amount of 300 billion rubles, the amount of the provided state guarantees will be increased, will expand preferential financing of business.

In Great Britain introduction of the tax holidays, allocation of grants and guaranteeing the credits (with covering to 80%) for small and medium business are offered.

In People's Republic of China banks grant payment deferral on the credits which are dropping out for the period from January 25 to June 30, 2020. In the Province of Hubei for small business the tax discharge on value added is cancelled, privileges on payment of the social tax are entered (for entrepreneurs, the having hired employees).

In the USA the Administration on small enterprises (Small Business Administration) grants the loans for replenishment of current assets (to 2 million US dollars) with the lowered rate to subjects of small business, victims of spread of koronavirusny infection.

Central Bank of the United Arab Emirates (further – TsBOAE) declared allocation of 100 billion dirham on support of retail and corporate business which were affected by spread of koronavirusny infection. According to the offered program, TsBOAE provides to 50 billion dirham in the form of loans with zero rate to banks of the second level. In addition the regulator reduces requirements to capital buffers in the amount of 50 billion dirham.

2. Situation in the Republic of Kazakhstan:

As of March 19, 2020 banks of the second level issue loans to 19 813 subjects of small and medium business for total amount 3, by 8 trillion tenges (principal debt).

In structure of portfolio of loans to subjects of small and medium business by sectors of economy: trade - 34%, the industry - 22%, the non-productive sphere - 17%, construction - 9%, agricultural industry - 8%, transport - 7% and other sectors - 4%.

The share of idle loans of subjects of small and medium business in portfolio of banks of the second level constitutes % 1,4. By currencies the main share is occupied by the credits issued in national currency (99%).

Due to the introduction of the emergency rule connected with spread of koronavirusny infection (COVID-19) considerably increased risks of entrepreneurship (operating expenses increase, interruptions in delivery of goods and raw materials are observed, demand and cash flows decreases) therefore many subjects of entrepreneurship are forced to limit or suspend the activities.

According to banks of the second level, the amount of the half-received payments from the companies of small and medium business which were affected by introduction of emergency state and provision of delay by it for 3 (three) months will constitute up to 600 billion tenges.

II. Mechanism of the credit program of subjects of entrepreneurship

3. Within the Program of preferential crediting of subjects of entrepreneurship (further – the Program) the total amount of financing by National Bank of the Republic of Kazakhstan (further – National Bank) banks of the second level and Agrarian Credit Corporation joint-stock company (further – AKK) will constitute up to 800 (eight hundred) billion tenges according to the limits of financing of banks of the second level of the Program established by the joint order of the Chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market (further – the Agency) and the Chairman of National Bank, and also the amount of financing of AKK which are used for issue of soft credits to subjects of entrepreneurship in accordance with the terms

Programs, from them:

1) for support of subjects of small, medium, big business and individual entrepreneurs, except for the subjects of entrepreneurship specified in the subitem 2) to part one of this Item through banks of the second level – to 700 (seven hundred) billion tenges.

For the purposes of crediting of subjects of big business the list of types of activity of subjects of entrepreneurship, victims during emergency state, affirms the joint order of the Minister of national economy of the Republic of Kazakhstan and the Chairman of National Bank;

2) for support of subjects of small and medium business, the individual entrepreneurs performing activities in the sphere of production and conversion in agro-industrial complex – to 100 (hundred) billion tenges, from them 70 (seventy) billion tenges through banks of the second level, 30 (thirty) billion tenges through AKK.

As the operator according to the Program the Kazakhstan Fund of Stability joint-stock company acts (further – KFU). The National Bank will perform recapitalization of KFU in the amount of 800 (eight hundred) billion tenges.

For the purposes of this Item KFU will place the caused contribution in banks of the second level and will perform acquisition of bonds of AKK.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info