Kazakhstan launches guarantee funds to boost SME, large-scale investment lendingKazakhstan has established two state-backed guarantee funds aimed at expanding access to financing for small and medium-sized businesses (SMEs) and large investment projects, the Damu Entrepreneurship Development Fund’s press service said."The Guarantee Fund for SMEs is being created jointly with the government, second-tier banks (STBs) and other investors. It will provide access to loans of up to 7 billion tenge in cases where an entrepreneur does not have sufficient collateral. This instrument will (...) reduce reliance on federal and local budget allocations for project financing," the fund says.Bank CenterCredit, Halyk Bank, and Freedom Bank have already signed agreements to participate, with more lenders expected to join, Damu said.A second fund will facilitate lending for large-scale projects by mobilizing liquidity from STBs and other investors into the real economy. Capital for this fund will be drawn from the Baiterek Holding and other legal entities.Key terms for large-project guarantees include a minimum project cost of 7 billion tenge ($13.9 million), a 20% equity requirement from project initiators, and maximum guarantees covering up to 30% of project costs for up to 15 years. Financing for the remaining 80% may come from STBs, international financial institutions, or Baiterek subsidiaries such as the Development Bank of Kazakhstan, Agrarian Credit Corporation, and Industrial Development Fund.Guarantee fees are set at 1.5% for SMEs and 2% for large projects.Damu anticipates the funds will expand its guarantee portfolio to 1 trillion tenge ($1.98 billion) by 2027, supporting over 50,000 projects annually—a fivefold increase from 2024 levels.The move follows President Kassym-Jomart Tokayev’s directive in January 2025 to create a national guarantee mechanism addressing businesses’ collateral shortages, which have constrained lending to the real sector.Tokayev also urged domestic banks to “reciprocate” the past government support by financing critical infrastructure projects.In February, the president cautioned against using National Fund reserves for non-strategic purposes, emphasizing that a separate guarantee fund involving the Unified Accumulative Pension Fund (UAPF) is under development.Damu, fully owned by the Baiterek National Managing Holding, serves as Kazakhstan’s national development institution. (ICE ALMATY)

Fonte notizia: INTERFAX