ASTANA – The Kazakh government adopted a comprehensive program to support and develop small and medium-sized enterprises (SMEs), integrating the Business Roadmap and Economy of Simple Things programs, the Prime Minister’s press service reported on Aug. 19.
Photo credit: SME South Africa
This program envisages support for effective projects, with up to 50% of the budget for subsidizing new ventures allocated to manufacturing enterprises. To reduce the budget burden, the subsidy period for service sector projects has been shortened from five to three years.
A differentiated method of subsidizing SME projects with a gradual transition to market conditions has also been introduced, with optimization in specific service areas eligible for subsidies.
The program has expanded the loan guarantee mechanism, increasing the guarantee amounts and allowing business entities to obtain guarantees on market terms for loans exceeding one billion tenge (US$2 million).
It also provides an alternative instrument of state support: syndicated lending, which involves several banks simultaneously financing large projects of up to 15 billion tenge (US$31.3 million).
The terms for providing bond loans have also been broadened. Entrepreneurs issuing bonds can now receive subsidies for the coupon rate, securing financing at a 6% interest rate for up to five years, with a loan amount of up to five billion tenge (US$10.4 million).
In the first six months of this year, the updated program has supported approximately 14,000 business projects, offering subsidies for 8,624 projects totaling 566 billion tenge (US$1.1 billion) and guarantees for 5,381 projects worth 178.9 billion tenge (US$374.4 million).
The government also plans to introduce differentiated support mechanisms based on the technological complexity of production. Entrepreneurs producing high-tech finished products will benefit from more favorable loan conditions, including lower interest rates and extended repayment periods.
