Kazakhstan supports agrarian sector, strengthens sustainability of Tsesnabank

ASTANA (TCA) — In their joint statement the Government of Kazakhstan and the National Bank recently proposed a package of measures to support agricultural producers and the agrarian sector as a whole. As part of this work, on September 19, the Government of Kazakhstan and the National Bank approved a mechanism for the purchase of a portfolio of agricultural loans from Kazakhstan’s Tsesnabank JSC for 450 billion tenge, the official website of the Prime Minister of Kazakhstan reported.

Within the next few days, the mechanism will be implemented, which will improve the conditions for agricultural producers, as well as increase the sustainability of Tsesnabank due to a fundamental improvement in the quality of its loan portfolio. Also, the amount and exact schedule of additional capitalization of Tsesnabank by its shareholders were determined.

Tsesnabank JSC jointly with JSC KazAgro NMH approved the mechanism for converting foreign currency loans granted to Kazakh agricultural producers to tenge loans with an extension of the lending terms. This will reduce the debt burden of agricultural enterprises and reduce the dependence on exchange rate fluctuations caused by external factors.

As part of the measures taken, the State provides support to the country’s agricultural sector, as well as the sustainability of Tsesnabank, which holds leading positions in lending to agricultural producers and is of systemic importance for the financial sector of the country.

Sergey Kwan

Sergey Kwan

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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