"Baiterek" Holding became an anti-crisis tool during the state of emergency

02.04.2020

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The head of state Kassym-Zhomart Tokayev, on March 31, in his statement to the people of Kazakhstan voiced measures to support business activity and employment in the regions. They are aimed at improving the effectiveness of the implementation of state policies to support the national economy during a state of emergency.

According to the President of the Republic of Kazakhstan, in order to quickly and accurately bring funds to the real economy, one should not exclude the possibility of direct financing through the "Baiterek" holding. In turn, I want to assure that the "Baiterek" holding company will fulfill all the instructions of the Head of State, becoming an anti-crisis tool.

I note that within the framework of the implementation of anti-crisis measures, Baiterek Holding plans to attract a bond loan for a total amount of not more than 600 billion tenge with a interest rate of 6% per annum for up to 12 years. The funds raised will be used to finance local executive bodies for the development of regions. This measure will create 250 thousand jobs and contributes to the implementation of projects of local and republican significance in regions and cities of republican significance.

I believe that in the current situation this will have a positive multiplier effect on the economic situation both in the country and in a particular region, will be an effective measure to support entrepreneurship and will contribute to ensuring stability in the labor market.

In addition, in order to increase the efficiency of the state’s policy on providing the population with housing, the Head of State approved the additional allocation of funds to finance housing construction.

Baiterek Holding is completing work to attract 180 billion tenge in the financial market. These funds will be directed to the construction of credit housing through the current mechanism of redemption of akimat bonds. This will make it possible to additionally build over 16 thousand apartments in all regions of the country.

I note that in the framework of the implementation of the "Nurly Zher" state program, "Baiterek" holding has been financing housing construction since 2017 through the purchase of akimat bonds. This mechanism allows you to wrap financial resources according to the "revolving" principle every two years and re-direct funds from the sale of housing for new construction.

Over the entire period, Akimat bonds were purchased for a total of 340.2 billion tenge, thereby ensuring the construction and commissioning of 1.8 million square meters of housing or 30.3 thousand apartments throughout the country.

The "Baiterek" holding is already doing a lot of work through its subsidiary, the "Damu" Entrepreneurship Development Fund. We continue to provide all state support measures in full.

Second-tier banks, leasing companies and microfinance organizations will provide borrowers with deferrals for payments of principal and interest payments for the next three months. Such support will be provided to borrowers who received it in the framework of state and their own programs of concessional lending to the Fund.

During the state of emergency, our Fund switched to a simplified format for considering changes to the existing conditions for financing projects.

On subsidizing part of the interest rate under the “Business Road Map - 2025”, the term for consideration of applications for restructuring financing has been reduced from five to one day. Moreover, until the end of the emergency period, additional agreements to subsidy agreements are not required.

Applications for the restructuring of project financing as part of the guarantee instrument, we consider within six business hours. There is no need to analyze the financial statements of the enterprise and draw up monitoring reports. I note that if changes to the conditions do not affect the guarantee agreement (for example, changing the loan repayment schedule), then additional agreements are not concluded.

In such a simplified format, from March 16 on guaranteeing, we have already agreed on the restructuring of financing conditions for 70 projects. We are talking about the amount of guarantees in more than one billion tenge. At the same time, the Fund does not stop the process of issuing new guarantees, since during the same period the Fund has guaranteed 50 projects, and 37 more projects have been approved.

From March 16 to March 30, 246 projects for the amount of loans of 58 billion tenge were supported on the subsidy instrument, of which 125 are new projects. 109 applications received restructuring and refinancing of the loan, 12 applications received extension of subsidies. Support for subsidies was provided under the programs "Business Roadmap-2025", "Economics of Simple Things", and "Nurly Zher".

"Baiterek" Holding and our subsidiaries provide maximum support to the population. For example, a subsidiary, the Investment Fund of Kazakhstan, stopped paying rent for SMB for three months, and Zhilstroysberbank, Kazakhstan Mortgage Company, Baiterek development delayed the payment of mortgages for three months without interest and penalties.

I assure you that we always work transparently and openly, and are ready to report on each tenge allocated as part of the anti-crisis measures of the state.