ASTANA, Kazakhstan, February 21. The guarantee
funds “Damu” and “Baiterek” will help businesses overcome financial
barriers in Kazakhstan in 2025, Trend reports.
To support Small and Medium Enterprises (SMEs) in 2025, Kazakhstan
will create the “Damu” Guarantee Fund. For this, the functions of
“Damu” will be supplemented with new tasks, the product line for
the guarantee instrument will be expanded, the amount of guarantees
provided will be increased, and the list of sectors of the economy
(OKED) eligible for guarantees will be extended.
New guarantee products are planned to be issued on the principles
of irrevocability and unconditionality. The creation of the
Guarantee Fund will reduce the burden on the state budget by
attracting funds from additional financing sources, increase the
coverage of business entities with the support measure of
guarantees, and allow the effective involvement of bank liquidity
in the economic turnover.
The launch of the guarantee fund will allow increasing the
portfolio of guarantees to 1 trillion tenge (approximately $2
billion) by 2028 (+148 percent compared to 2023) and support more
than 50,000 projects annually (in 2023, 8,212 projects were
supported through the guarantee instrument).
In 2025, the Damu Fund is set to back a whopping 30,000 SME
projects, to the tune of 1.7 trillion tenge (around $3.4
billion).
The Baiterek Guarantee Fund for large businesses will address the
issue of sufficient collateral for large and strategically
important projects.When financing a project, the loan from
second-tier banks and/or Baiterek Development Bank can constitute
80 percent of the project cost. The guarantee will be provided for
up to 30 percent of the project cost, addressing the collateral
sufficiency issue.
The total financing amount for Baiterek is 7.3 trillion tenge
(approximately $14.6 billion), with 3.7 trillion tenge
(approximately $7.4 billion) allocated for 2025. The holding’s
guarantee may reach 2.2 trillion tenge (approximately $4.4
billion), or up to 30 percent, of which up to 1.1 trillion tenge
(approximately $2.2 billion) will be in 2025. Furthermore, 50
percent of the guarantee is collateral from the partner's future
business. In certain cases, Baiterek may enter the capital of the
project, allowing the entrepreneur's own participation to be less
than 20 percent. This addresses the issue of insufficient
collateral for large projects.Guarantees for financing large
business entities will be provided for projects with a value of at
least 7 billion tenge (approximately $14 million).
For second-tier banks, this will open the floodgates for lending
volumes and help keep credit risks at bay when collateral is in
short supply.
Guarantees are strategically designed to be implemented within the
production domain. The immutable nature of the guarantees is
strategically designed to amplify the banks' vested interests,
while the monetized aspect of the guarantees for enterprises
fosters a heightened sense of accountability among business
operators.
JSC National Managing Holding Baiterek is a key institution of the
Government of the Republic of Kazakhstan, corresponding to advanced
corporate governance standards and ensuring the implementation of
tasks for the sustainable development of Kazakhstan's economy.The
sole shareholder of JSC National Managing Holding ‘Baiterek is the
Government of the Republic of Kazakhstan. The “Baiterek” Holding is
an integrated development institution, which includes 8 subsidiary
organizations: joint-stock companies fully owned by the Holding,
such as JSC “Development Bank of Kazakhstan,” JSC “Otbasy Bank,”
JSC “‘Damu’,” JSC “Kazakhstan Housing Company,” JSC “ESC ‘Kazakh
Export’,” JSC “Qazaqstan Investment Corporation,” JSC “Agrarian
Credit Corporation,” and JSC “Bereke Bank.”
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