ORDER OF THE MINISTER OF AGRICULTURE OF THE REPUBLIC OF KAZAKHSTAN

of November 25, 2014 No. 9-1/613

About approval of Rules of subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery

According to the subitem 41) Item 1 of article 6 of the Law of the Republic of Kazakhstan of July 8, 2005 "About state regulation of development of agro-industrial complex and the rural territories" PRIKAZYVAYU:

1. Approve the enclosed Rules of subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery.

2. To provide to department of investment policy and financial instruments of the Ministry of Agriculture of the Republic of Kazakhstan the state registration of this order in the Ministry of Justice of the Republic of Kazakhstan and official publication in the procedure established by the legislation.

3. To impose control of execution of this order on the supervising Vice-Minister.

4. This order becomes effective after ten calendar days from the date of its first official publication.

Approved by the Order of the Minister of Agriculture of the Republic of Kazakhstan of November 25, 2014 No. 9-1/613

Rules of subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery

1. General provisions

1. These rules of subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery (further - Rules) are developed according to the Law of the Republic of Kazakhstan of July 8, 2005 "About state regulation of development of agro-industrial complex and the rural territories" and determine procedure for subsidizing of rates of remuneration by the credits, and also leasing of processing equipment and agricultural machinery.

2. Main objective of subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery is increase in availability of financial services to subjects of agro-industrial complex (further - the AIC).

3. In these rules the following terms and determinations are used:

1) the conditional head of farm animal - transfer of livestock of farm animals in the conditional head of cattle, according to the coefficients of transfer of livestock of farm animals in the conditional head of cattle specified in appendix 1 to these rules;

2) the administrator of the budget program (further - the administrator) - the Ministry of Agriculture of the Republic of Kazakhstan;

3) the commission - the advisory advisory body headed by the deputy manager of the administrator with participation of representatives of the interested structural divisions of the administrator, and also representatives of other state bodies, financial institutions and the interested industry public organizations;

4) the agreement of subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery - the written agreement signed between the administrator, financial institution and the operator, providing procedure and conditions of money transfer, responsibility of the parties, the list of borrowers according to which the administrator subsidizes part of rate of remuneration according to the loan agreement of the borrower;

5) the loan agreement - the agreement signed between financial institution and the borrower under the terms of whom the financial institution provides credit/leasing;

6) financial institutions - the banks of the second level, credit institutions having licenses for the right of banking operations, and also leasing companies and credit partnerships in the field of the AIC;

7) the borrower - the physical, legal entity irrespective of pattern of ownership, including the peasant farm which is engaged in production and/or conversion of agricultural products and also the physical person or legal entity rendering services in procurement, storage, transportation and realization of agricultural products;

8) the servicing bank - the bank of the second level authorized by financial institution (for the leasing companies and rural credit partnerships which do not have the right of opening and maintaining business bank accounts) to perform functions on maintaining the special checking account of the financial institution intended for transfer and write-off of subsidies according to loan agreements;

9) leasing - transfer by financial institution of agricultural machinery, processing equipment to temporary ownership and use with the right of the subsequent redemption for the entrepreneurial purposes;

10) operator - the Kazagromarketing joint-stock company attracted as the specialized organization in the field of agro-industrial complex based on the agreement on rendering services of the operator in subsidizing of rates of remuneration according to loan agreements;

11) subsidizing - the form of the state financial support of borrowers used for partial reduction in cost of interest rates of remuneration for loan agreements;

12) processing equipment - the equipment on production and conversion of agricultural products consisting of the equipment of direct assignment and auxiliary without which application the complete production cycle cannot be provided.

4. The remuneration rates according to loan agreements in the field of the AIC directed on are subject to subsidizing:

1) replenishment of current assets, acquisition of fixed assets and construction;

2) leasing of processing equipment, agricultural machinery.

Subsidizing is not performed under agreements of returnable leasing, subleasing.

Subsidizing of rates of remuneration is performed for the account and within the means provided within the appropriate budget program, the corresponding financial year taking into account earlier signed agreements of subsidizing.

Remuneration rates according to loan agreements which purpose is complete or partial repayment of the borrowed means, with the purpose specified in subitems 1) and 2) of this Item are also subject to subsidizing.

5. Subsidizing of rate of remuneration according to loan agreements, approved by the commission, is performed on all effective period of agreements.

In case of prolongation of effective periods of loan agreements, terms of subsidizing are not prolonged.

In case of change of conditions of loan agreements, earlier approved and added by the commission by years, the amounts of subsidies do not increase, terms of subsidizing are not prolonged. In case of reduction of the amount of remuneration recalculation of the amounts of subsidies towards reduction, separately by every year is made.

Calculation of amounts of subsidies is perfromed according to the loan agreements which are earlier issued by financial institutions, at the same time charge of subsidy begins since January 1 year in which the request for subsidizing of rates of remuneration on the credits, and also leasing of processing equipment and agricultural machinery (further - the request for subsidizing) in form, according to appendix 2 to these rules was provided to the operator.

Calculation of amounts of subsidy for the loan agreements signed in year of application for subsidizing to the operator begins with the moment of issuance of credit or transfer of subject of leasing.

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