Export credits to be subsidized in Kazakhstan
Subsidies for export credits are provided for in the Law “On Industrial Policy”, which was signed yesterday by the President of Kazakhstan.
The head of state signed the Law “On Industrial Policy”. This was reported on the website of Akorda. In addition to the basic principles of further development of the manufacturing sector, the bill contains a number of mechanisms and system measures that will help Kazakhstani enterprises to be competitive in modern realities, including in foreign markets.
Manufacturers are particularly interested in the mechanism of subsidizing the rate of remuneration for export loans. Kassym-Jomart Tokayev instructed to develop and implement this mechanism at the congress of the Council of Foreign Investors this summer. The instrument is aimed at stimulating the export of goods and services with high added value, such as mechanical engineering products, engineering services, etc. The rules of subsidies in the near future will be approved by the Ministry of Trade and Integration, and the operators for the implementation of the mechanism will be the subsidiaries of the “Baiterek” holding - the national company KazakhExport and the “DAMU” entrepreneurship development fund.
Ruslan Iskakov, Chairman of the Management Board of JSC “EIC “KazakhExport” comments:
“During the period of global restrictions and logistics costs, export of services can become one of the most profitable and promising areas. Among the clients of the KazakhExport there are several exporters who are currently working on the construction of the Amur Gas Processing Plant in the Far East, are engaged in design work for the Italian corporation Desmet Ballestra Group, the Russian “Nornickel”, the Ukrainian iron ore mill. Another company - AAEngineering - built two gold-producing factories in Kyrgyzstan, beating well-known German contractors in the competition. The volume of services rendered amounted to more than 200 million dollars.”
The mechanism itself involves reimbursement at the expense of the state budget of a part of the remuneration interest rate to creditor banks on loans related to export operations of Kazakhstani enterprises. Work is already underway to prepare the necessary legislative framework, determine the amount of financing, and develop regulatory documents.
According to Ruslan Iskakov, the introduction of such a mechanism will give an advantage to producers and increase demand for goods and services of Kazakhstan abroad by bringing the cost of financing to a level acceptable to importers in the world market. In turn, this will create a multiplier effect and lead to an increase in exports, tax revenues, creation of jobs, an increase in Kazakhstan's content in goods and services.
https://informburo.kz/special/v-kazaxstane-nacnut-subsidirovat-eksportnye-kredity
