Baiterek Holding began supporting the agro-industrial complex
Baiterek National Managing Holding JSC begins to perform a new function – providing financial support for the agro-industrial complex. This function was performed by KazAgro Holding before its merging into the Baiterek Holding. On March 15, 2021, the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan approved the act.
Thus, three subsidiaries of the KazAgro Holding – Agrarian Credit Corporation JSC, KazAgroFinance JSC, and Fund for Financial Support of Agriculture JSC were merged into the Baiterek Holding.
– On behalf of Kassym-Jomart Tokayev, the President of Kazakhstan, a lot of work has been done. This large-scale optimization is aimed at the improvement of the development institutions and efficient provision of state support to the people of Kazakhstan. I would like to emphasize that the merging process will not have a negative impact on farmers. State support for the agro-industrial complex will be provided in full, – said Aidar Arifkhanov, the head of the Baiterek Holding.
In addition, the Baiterek Holding actively supports subjects of the agro-industrial complex together with the Ministry of Agriculture of the Republic of Kazakhstan, the Association of Financiers of Kazakhstan, second-tier banks, and development institutions. In particular, potential projects in the agro-industrial sector have been developed. They are expected to help increase domestic market saturation and reduce the import of consumer goods.
In the Holding, a new department for managing agricultural assets was created without increasing the number of employees.
It should be borne in mind that the Baiterek Holding pursuant to paragraph 52 of the National Action Plan for the implementation of the State of the Union Message dated September 1, 2020 “Kazakhstan in a new reality: time for action” is trying to create a unified development institution by merging with the KazAgro Holding.
It should be noted that the transition of KazAgroFinance JSC to Agrarian Credit Corporation JSC is in process. All the necessary procedures, including making amendments to the relevant legislative acts, will be performed. Damu Entrepreneurship Development Fund JSC will take over the function of guaranteeing loans and leasing transactions, which was previously the function of the Fund for Financial Support of Agriculture JSC. Agrarian Credit Corporation JSC will take over the function of crop insurance and issuing loans to microbusinesses. It used to be the function of the Fund for Financial Support of Agriculture JSC, which is planned to be liquidated.
Currently, the Baiterek Holding includes 12 subsidiaries:
Development Bank of Kazakhstan JSC (www.kdb.kz) supports large businesses and invests in the non-resource sector of the country.
Damu Entrepreneurship Development Fund JSC (www.damu.kz) supports small and medium-sized businesses.
“KazakhExport” Export Insurance Company JSC (www.kazakhexport.kz) ensures the increase of exports of non-primary goods and services in priority sectors of the economy.
Kazyna Capital Management JSC (www.kcm-kazyna.kz) is a private equity fund created to promote the sustainable development of the country's economy.
Investment Fund of Kazakhstan JSC (www.ifk.kz) contributes to the sustainable development of the country by improving problem projects.
QazTech Ventures JSC (www.qaztech.vc) promotes technology entrepreneurship through venture financing, business incubation, and expert technical support.
Kazakhstan Project Preparation Fund LLP (www.kppf.kz) contributes to the country’s infrastructure development by supporting infrastructure projects.
Kazakhstan Housing Company JSC (www.khc.kz) is the main operator of housing construction.
“Otbasy Bank” Housing Construction Savings Bank JSC (www.hcsbk.kz) is the country’s only bank that implements the system of housing construction savings.
Agrarian Credit Corporation JSC (www.agrocredit.kz) contributes to the sustainable development of the country's agro-industrial complex.
KazAgroFinance JSC (www.kaf.kz) contributes to the technical equipment of the country's agro-industrial complex by providing high-quality leasing services.
Fund for Financial Support of Agriculture JSC (www.fagri.kz) finances small businesses in order to develop priority sectors of the agro-industrial complex and increase the employment level.
It is planned to reduce the number of portfolio companies from 12 to 7 and change the number of full-time employees.
