ASTANA, Kazakhstan, March 4. Kazakhstan is set to create a guarantee fund aimed at supporting the financing of large-scale business projects, said Rustam Karagoishin, Chairman of the Board of the Baiterek Holding, during a government meeting, Trend reports.
The new fund is designed to boost lending to the economy, particularly for large investment projects. Karagoishin explained that the fund would serve as a tool to attract liquidity from second-tier banks and make financing more appealing for both private and state participants.
The core idea behind the fund is for the government to assume part of the financial risks involved in financing large projects. This will improve access to funding and financing terms, promoting the development of initiatives vital to the economy. The fund will be managed by Baiterek Holding and will focus on supporting projects worth at least 7 billion tenge ($14 million).
"The fund will address the issue of sufficient collateral for large and strategically important projects. The project initiator must contribute at least 20% of the project’s value, while the remaining 80% will be financed through loans from second-tier banks and the Development Bank of Kazakhstan. The Holding will cover up to 30% of the financing amount for creditors," Karagoishin added.
