- Who We Are
Approved by the Decree of the Government of the Republic of Kazakhstan №968 on December 24, 2019
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The legal basis for implementation |
The Decree of the President of the Republic of Kazakhstan #772 dated October 12, 2018 “On measures to implement the President’s Message to the People of Kazakhstan entitled “Increasing income and quality of life of Kazakhstan Citizens” dated October 5, 2018 |
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State body responsible for the program implementation |
Ministry of National Economy of the Republic of Kazakhstan |
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Purpose of the program |
To ensure sustainable and balanced development of regional entrepreneurship; to create new jobs and maintain existing ones |
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Objectives |
1. To make financing more accessible for small and microbusinesses 2. To increase the productivity of the manufacturing industry 3. To create new competitive industries 4. To provide information and analytical support to entrepreneurs. 5. To increase the competence of entrepreneurs. 6. To strengthen business ties. |
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Terms of implementation |
2020 – 2024 |
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Goals |
By fulfilling the objectives, the following goals are expected to be achieved by 2025: 1. To increase the share of small and medium-sized businesses in GDP to at least 33.8%. 2. To boost tax revenues from the program participants by 2 times in comparison with 2017. 3. To help the program participants create 30 thousand jobs. 4. To increase the share of the manufacturing industry in GDP to at least 13.4%. 5. To increase the share of medium-sized businesses in the economy to at least 13.7%. |
Damu Entrepreneurship Development Fund, a subsidiary of Baiterek Holding, implements the Business Road Map-2025 State Program (hereinafter – the Program) and supports businesses by subsidizing interest rates on loans, financial leasing agreements, and microcredits received from second-tier banks, the development bank, leasing companies, and microfinance organizations. The Fund also issues partial guarantees for loans and microcredits received from second-tier banks, the development bank, and microfinance organizations. The program has two phases:
1. Supporting small and microbusinesses;
2. Supporting entrepreneurs and subjects of industrial and innovative activities.
The 1st phase: Supporting small and microbusinesses
During its first phase, the program will provide the following financial support to entrepreneurs:
1. subsidizing a part of the interest rate and partial guaranteeing for loans and microcredits;
2. subsidizing a part of the profit margin and a part of the lease payment that make up the income of Islamic banks.
The program’s first phase covers small and microbusinesses.
The conditions and procedure are regulated by the Rules for subsidizing a part of the interest rate and partial guaranteeing for loans and microcredits of small and microbusinesses.
Subsidizing a part of the profit margin and a part of the lease payment that make up the income of Islamic banks is carried out for loans, microcredits, or financing issued for investment purposes and replenishment of working capital without industry restrictions. This does not apply to pawnshops, microfinance organizations, and leasing companies.
The maximum amount of a loan, microcredit, or financing issued for investment purposes and for which a part of the interest rate or profit margin that constitutes the income of an Islamic bank is subsidized, cannot exceed 20 (twenty) million tenge; for replenishment of working capital – not more than 5 (five) million tenge. Loans and microcredits for working capital replenishment must be renewable and/or non-renewable.
Subsidizing a part of the interest rate or profit margin that constitutes the income of an Islamic bank is carried out only for loans/financing with a nominal interest rate/profit margin not exceeding the rate of interest established by the National Bank of the Republic of Kazakhstan and increased by 8.5%, of which 6% is paid by an entrepreneur, and the rest is subsidized by the state.
Subsidizing a part of the interest rate and partial guaranteeing are carried out only for microloans issued by microfinance organizations with a nominal interest rate not exceeding 28% per annum, of which 50% is compensated by the state.
Subsidizing a part of the remuneration rate and partial guaranteeing are carried out for microloans issued by microfinance organizations for projects in priority sectors of the economy in accordance with Appendix 2 to this document.
The amount of the partial guarantee for small and microbusinesses is up to 85% of the loan, microcredit, or financing amount. The remaining loan amount is paid by an entrepreneur at the discretion of a bank.
The term of subsidizing a part of the interest rate or profit margin that constitutes the income of an Islamic bank from microcredits or financing and intended for investment purposes is 3 years; for working capital replenishment – 2 years without the right to prolong the subsidy period.
The term of the provided partial guarantee cannot exceed the term of the loan, microcredit, or financing amount.
The 2nd phase: Providing support for entrepreneurs and subjects of industrial and innovative activities
During its second phase, the program will provide the following financial support to entrepreneurs and subjects of industrial and innovative activity:
1) subsidizing the interest rate on loans, financial leasing agreements, mezzanine loans, and (or) loans from banks, the development bank, private equity funds, or leasing companies;
2) subsidizing the interest rate on loans from banks or the development bank issued to businesses to implement green projects;
3) subsidizing a part of the profit margin and a part of the lease payment that make up the income of Islamic banks;
4) subsidizing the interest rate on loans issued to ensure long-term tenge liquidity to solve the problem of affordable credits in the manufacturing industry and services, and for processing in the agro-industrial complex;
5) subsidizing the coupon rate on bonds issued by businesses;
6) subsidizing the coupon rate on climate bonds included in the official list of the stock exchange, and (or) climate bonds issued in accordance with the acts of the AIFC and included in the list of the AIFC stock exchange;
7) partial guaranteeing for loans issued by banks and the development bank;
8) partial guaranteeing on loans issued by banks to ensure long-term tenge liquidity to solve the problem of affordable credits in the manufacturing industry and services, and processing in the agro-industrial complex.
The participants in the program’s second phase are effective entrepreneurs or subjects of industrial and innovative activities who implement and (or) plan to implement their own projects without industry restrictions, except for:
1) projects in the field of trading activities (except for loans not exceeding 100 million tenge received to replenish working capital);
2) projects of entrepreneurs and subjects of industrial and innovative activities that are specified in paragraph 4 of Article 24 of the Entrepreneurial Code of the Republic of Kazakhstan (this subparagraph applies to projects that were registered starting from April 20, 2020);
3) the activities of pawnshops, microfinance organizations, and leasing companies.
The participants in the program’s second phase are also entrepreneurs and subjects of industrial and innovative activities who are implementing and (or) planning to implement green projects, developed by the authorized body in the field of environmental protection and approved by the Government of the Republic Kazakhstan, in accordance with the environmental laws of the Republic of Kazakhstan.
Follow the link to view the conditions for granting subsidies under the second phase:
Part of the interest rate is subsidized for new loans, financial leasing agreements, mezzanine loans, and (or) loans issued for the implementation of new effective investment projects, as well as projects aimed at modernization, increasing the productivity, replenishment of working capital, and franchising.
The amount of a loan or a financial lease agreement, taking into account all existing loans, for which a part of the interest rate is subsidized, cannot exceed 7 (seven) billion tenge for one entrepreneur.
The subsidy period for loans and financial leasing agreements, including loans issued for the implementation of green projects aimed at investments, is 5 (five) years without the right to extend the subsidy period. The term for subsidizing loans aimed at replenishing working capital is 3 (three) years without the right to extend the subsidy term.
Subsidizing is carried out for loans, financial leasing agreements, and loans issued for the implementation of green projects, with a nominal interest rate not exceeding the interest rate established by the National Bank of the Republic of Kazakhstan and increased by 5%, of which 6% is paid by an entrepreneur, and the rest is subsidized by the state.
If an entrepreneur receives a loan exceeding 180 (one hundred and eighty) million tenge, including loans issued for the implementation of green projects, must invest his/her own money (or other movable or immovable assets) in the project, including assets of third parties, provided as security not lower than 10% of the total cost of the project.
Follow the link to view the conditions for guaranteeing under the second phase:
The guarantee is provided for loans issued by banks for the implementation of effective investment projects, as well as projects aimed at modernizing, increasing productivity, or refinancing.
The guarantee is also provided for loans issued for franchising and/or following public-private partnership agreements without industry restrictions. This does not apply to projects of entrepreneurs and subjects of industrial and innovative activities specified in paragraph 4 of Article 24 Entrepreneurial Code of the Republic of Kazakhstan.
Guaranteeing can be carried out only on bank loans with a nominal interest rate not exceeding the base interest rate of the National Bank of the Republic of Kazakhstan, increased by 5% as of the date the bank decides on the project of an entrepreneur and a development bank with an interest rate of no more than 15% per annum.
Guaranteeing conditions for entrepreneurs:
1) the loan(s) amount cannot exceed 1 (one) billion tenge for bank loans.
The total amount of loans and financial leasing agreements of individual businesses cannot exceed 100 (one hundred) billion tenge;
2) the amount of the guarantee cannot be more than 50% of the loan amount, while the entrepreneur provides security for the loan with a pledge value of at least 50% of the loan amount (when calculating the sufficiency of security, the pledge of the right of claim and the pledge of business partnerships’ shares in the authorized capital are not taken into account);
3) the term of the guarantee cannot exceed the term of the loan;
4) loan currency is tenge.
For loans exceeding 180 (one hundred and eighty) million tenge, the entrepreneur must provide his/her own money or movable/immovable property in the amount of at least 10% of the total cost of the project.
Implementation of the State Enterprise «Business Roadmap-2025»
Subsidizing projects in all areas for the period from 01.01.2022 to to 01.0 4.2022
| AREAS | DKB 2 direction | portfolio subsidies | TOTAL |
|
Akmola region |
8 | 8 | |
| Aktobe region | 14 | 14 | |
| Almaty region | 2 | 2 | |
| Atyrau region | 11 | 11 | |
| East Kazakhstan region | 4 | 4 | |
| Almaty city | 16 | 16 | |
| Nur - Sultan | 29 | 29 | |
| Shymkent | 3 | 3 | |
| Zhambyl region | 1 | 9 | 10 |
| Karaganda region | 23 | 23 | |
| Kostanay region | 1 | 23 | 24 |
| Kyzylorda region | 1 | 1 | 2 |
| Pavlodar region | 2 | 1 | 3 |
| Turkestan region | 5 | 5 | |
| Grand total | 89 | 65 | 154 |
| AREAS | Number of signed guarantees | Total loan amount, tenge | Total amount of guarantees, tenge |
| Akmola region | 24 | 784,904,000 | 345,576,656 |
| Aktobe region | 46 | 2,169,401,600 | 1,067,452,134 |
| Almaty region | 30 | 2,990,099,085 | 1,333,981,122 |
| Atyrau region | 35 | 1,834,400,000 | 757,535,099 |
| East Kazakhstan region | 31 | 1,577,500,000 | 589,904,052 |
| Zhambyl region | 31 | 1,300,300,000 | 562,628,519 |
| West Kazakhstan region | 30 | 2,032,012,000 | 800,159,100 |
| Karaganda region | 23 | 1,437,900,000 | 656,244,665 |
| Kostanay region | 31 | 1,766,160,303 | 657,756,430 |
| Kyzylorda region | 33 | 1,206,700,000 | 457,853,097 |
| Mangystau region | 12 | 577,369,148 | 227,247,815 |
| Pavlodar region | 40 | 1,713,845,464 | 630,808,569 |
| North Kazakhstan region | 22 | 986,905,000 | 355,598,800 |
| Turkestan region | 15 | 505,800,000 | 138,700,277 |
| Shymkent | 37 | 1,669,929,264 | 606,352,157 |
| Nur -Sultan | 50 | 4,343,868,053 | 1,540,499,392 |
| Almaty city | 44 | 3,743,429,000 | 1,432,191,280 |
| Total | 534 | 30,640,522,917 |
12,160,489,165
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More detailed information on the results of the implementation of the Program can be obtained on the Damu website https://damu.kz/poleznaya-informatsiya/report s /dkb-2025/month/
Resolution of the Government of the Republic of Kazakhstan dated October 12, 2021 No. 728 "On approval of the National Project on Entrepreneurship Development for 2021-2025" (https://adilet.zan.kz/rus/docs/P2100000728 )
Resolution of the Government of the Republic of Kazakhstan dated February 2, 2022 No. 43 "On Amendments and Additions to the Resolutions of the Government of the Republic of Kazakhstan dated December 11, 2018 No. 820 "On Some Issues of Ensuring Long-term Tenge Liquidity to Solve the Problem of Affordable Lending" and dated December 31, 2019 No. 1060 "On some measures of state support for Private Entrepreneurship" (https://adilet.zan.kz/rus/docs/P2200000043/history )
