Dear Bakytzhan Abdirovich!
Under the instruction of the Head of state, we have implemented microcredits for self-employed and unemployed citizens in the framework of the Fourth social initiative to ensure the growth of population income through the development of entrepreneurship.
Within the framework of the Fourth social initiative in 2018, financing for the program of microcredits was increased by 20 billion KZT, including microcredits in cities-6 billion KZT, in villages-14 billion KZT. Taking into account the additional funds allocated, the total amount for microcredit amounted to 62 billion KZT. From them
45 billion KZT (73%) were directed to microcredit in rural areas and 17 billion KZT (27%) in urban areas.
At the expense of the allocated funds, the plan of microcredit coverage was doubled in comparison with 2017 and amounted to 14 thousand people.
Under the terms of the Program, microcredits are provided for the purpose of opening a micro business, expanding existing business and developing anchor cooperation.
Microcredits are issued for a period of up to 5 years, and for projects in the field of animal husbandry and the creation of agricultural cooperatives - up to 7 years.
The nominal interest rate on loans is not more than 6% per annum.
Also, for start-up entrepreneurs guarantees are not higher than 85% of the loan amount.
Microcredits are issued at the following differentiated limits:
- for the cities of Astana, Almaty, Atyrau and Aktau - up to 20 million KZT;
- for other cities - up to 16 million KZT;
- loans for village – 6.3 million KZT;
- on the development of anchor cooperation-20 million KZT.
The operators of the microcredit program are the Ministry of agriculture in rural areas and the Ministry of national economy in urban areas.
In 2018, in order to effectively implement the Fourth social initiative, the Program was amended to include:
- differentiation of microcredit limits in rural and urban areas,
- increase in the size of microcredits in rural settlements for the development of anchor cooperation - from 5 to 8 thousand MCI;
- development of the anchor cooperation around the processing of agricultural enterprises and simplification of procedures of issuing of microcredits;
- addition of the number of participants of the Program by existing entrepreneurs;
- reduction of requirements for the creation of at least one new permanent job for existing entrepreneurs, participants of anchor cooperation and agricultural cooperatives;
- inclusion of the rules on guaranteeing entrepreneurs-participants of anchor cooperation, the period of state registration of which in the tax authorities for more than three years.
At the end of 2018, 59.5 billion KZT or 96% of the plan for the year was disbursed under the microcredit program, of which in rural areas – 45.4 billion KZT (100%), in urban areas – 14.1 billion KZT (83%).
The best indicators in terms of regions for the development of funds were noted in Almaty 2.1 billion KZT (161%), Turkestan region (including Shymkent) 7.4 billion KZT (111%), Almaty region 6.0 billion KZT (105%), and Atyrau region 1.6 billion KZT (102%).
Low rates of development of funds were recorded in Astana (72%), Mangystau (88%), Pavlodar (88%), Karaganda regions (89%).
In total, 14 053 microcredits were issued in 2018, of which 12 760 or 116% of the annual plan were issued in rural areas
(11 thousand), in cities - 1 293 or 43% (3 thousand).
The average size of microcredits in rural areas amounted to 3.5 million KZT, and in cities – 11 million KZT.
Of the issued microcredits to support Start-up projects accounted for 9 772 microcredits (70%), the development of a new direction of anchor cooperation
1 024 microcredits (7%), to expand their own business 3 257 microcredits (23%).
Thus, the implementation of the Fourth social initiative is fully ensured.
In the context of economic sectors, microcredits were issued for the development of animal husbandry -76% (10 699), crop production – 2.7% (376), poultry – 2.2% (307), transport and storage – 6% (843), accommodation and food services – 4% (562), manufacturing industry – 2% (282), wholesale and retail trade – 1% (141), provision of other services – 5.6% (787), construction – 0.4% (56).
As the Head of state stressed, microcredit is especially important for increasing the income of the self-employed and unemployed population.
In the framework of the microcredit program 13 367 people from the self-employed and 1 686 unemployed had the opportunity to do business and to formalize their activities.
The active participation of women in the development of entrepreneurship should be noted. At the end of 2018, 3,033 women or 21% of the total number of participants received microcredits under the Program. 1 849 women of them for the first time opened their own business.
Microcredits are also in demand among young people. In 2018, 2,048 young people (15%) engaged in entrepreneurship, including 1,008 people received microcredits for star-up projects.
As a result of microcredits in tax authorities more than 9 thousand people are registered as IE.
In addition, an important social effect in the form of job creation is obtained. In total, 12,613 jobs have been created by the recipients of microcredits.
One of the conditions for obtaining microcredits under the Program is to teach the basics of entrepreneurship under the project "Bastau-Business".
This project is implemented jointly with the National chamber of entrepreneurs "Atameken".
In 2018, the training covered 28.3 thousand people or 100% of the annual plan, of which 19.4 thousand participants defended their business projects, of which 7.7 thousand people received microcredits.
It should be noted that according to the results of training in 2018, 95% of the participants who launched the business began to transfer taxes to the budget.
We would like to focus on the tasks for 2019.
This year, the volume of financing for the program of microcredit is 62 billion KZT, of which at the expense of the national budget - 54 billion KZT, transfers of a general nature – about 8 billion KZT.
Taking into account that according to the instructions of the Accounts committee for the execution of the republican budget, this year the funds provided for microcredits in the framework of Transfers of a general nature have been redistributed to other activities of the Program, local executive bodies need to replenish the funds in the amount of
8 billion KZT in the refinement of the local budget at the beginning of the year.
Also, this year at the expense of the allocated funds the task to cover with microcredits is set
14 thousand people, including 12 thousand people in rural areas, 2 thousand people in urban areas.
In order to execute the indicators on microcredit, the Operators of the microcredit program together with the regional akimats need to accelerate the signing of tripartite loan agreements and ensure the targeted use of the allocated funds and bringing to the final borrowers.
The Ministry, together with the Program Operators, is taking all necessary measures for the effective and timely implementation of this initiative.
Thank you for attention!