News

Kazakhstan: "Auyl" party presented the draft law "Ob Agrobanka"

Dairy
Regulation & Compliances
Innovation & Technology
Published Apr 17, 2024

Tridge summary

In Kazakhstan, the Auyl party has introduced a proposal for the establishment of an 'Agrobank' to transform the agricultural financing landscape. This initiative, discussed at the Agro-Industrial Complex Committee of the Atameken Chamber of Entrepreneurs, aims to offer farmers more affordable lending rates and revise collateral policies to bolster agricultural growth. Inspired by the achievements of specialized institutions like Otbasy Bank and DBK, the plan envisions Agrobank starting as a fully state-owned entity, with an eventual strategy to transition farmers into shareholders. This approach is designed to address the persistent underfunding in the sector, despite past governmental rejections of similar proposals.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Auyl party presented at the next session of the Agro-Industrial Complex Committee of the Atameken Chamber of Entrepreneurs a draft law “On Agrobank”, which, according to its developers, will significantly change the approach to financing agriculture. The Agrosektor.kz portal reports this with reference to The Dairy News. According to Mazhilis deputy, member of the Auyl party faction Anas Bakkozhaev, the introduction of a specialized institute will change the current state of affairs in agricultural financing. He cited the example of two successful specialized banks in Kazakhstan - Otbasy Bank and DBK, noting that their emergence had a positive impact on the respective markets. In his opinion, the creation of Agrobank will be able to provide farmers with access to lower lending rates by financing programs with high profitability. In addition, the approach to collateral policies will change, which will also contribute to the development of agriculture. As noted by the first ...
Source: Agrosektor
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