Kazakhstan supports domestic car industry

ASTANA (TCA) — The Development Bank of Kazakhstan has allocated 11 billion tenge from the National Fund of Kazakhstan to support Kazakhstan’s car-making industry by lending to private individuals for the purchase of vehicles, the official website of the Prime Minister of Kazakhstan reported with reference to the Bank.

“Within the framework of the Nurly Zhol New Economic Policy, the Development Bank of Kazakhstan (DBK) is allocating 11 billion tenge from the National Fund to support Kazakhstan’s car assembly plants. These funds are directed to four commercial banks for lending to individuals for the purchase of cars assembled in Kazakhstan,” the Bank said.

Under the terms of loans approved by the Government of Kazakhstan to individuals for the purchase of passenger vehicles of domestic production, the nominal interest rate is not more than 4% per annum. The annual effective rate (including the cost of insurance and vehicle registration as collateral) must not exceed 7.5% per annum. Loan terms are up to 5 years, the loan currency is the tenge, the cost of one car purchased through a loan is not more than 9 million tenge, the initial fee (if any) is not more than 20% of the cost of the purchased car.

Auto loans will be provided through the following banks: Halyk Bank of Kazakhstan (3 billion), Eurasian Bank (3 billion), Sberbank of Russia (3 billion), and Bank Center Credit (2 billion).
Borrowers will be offered 37 car models, such as Kia, Toyota, Chevrolet, Skoda, Hyundai, and others, which are assembled by Kazakhstan’s SaryarkaAvtoProm and JSC ASIA AUTO.

As of January 8, 2016, 26 billion tenge had been allocated from the National Fund of Kazakhstan to support domestic automakers through the DBK.

Sergey Kwan