In the financing of agriculture, Kazakhstan implements the OECD recommendations that were given on the basis of country overview in 2013. It was told by the Vice-Minister of agriculture of the Republic of Kazakhstan Gulmira Isayeva during the Working party of the high level on Agricultural Policies and Markets holding in Paris these days.
During the international event the annual report of OECD “Agricultural policies monitoring and evaluation” is discussed including also a block of information on Kazakhstan. Gulmira Isayeva acquainted the participants of the meeting with the processes occurring in the agriculture of the republic, covering at the same time a wide range of activities in the industry – from production to exporting. As the large block of the OECD recommendations address the issues of increasing the access of agribusiness to financing, the role of the state and state agents-enterprises in this process, the representative of Kazakhstan also spoke about the activities of “KazAgro” National management holding and a group of its companies to support the agricultural sector.
Thus, according to her, the Holding today increases the participation of the private sector in financing of rural business. Within this process, three of its subsidiaries are transferred to a competitive environment. “KazAgro” moves from direct financing of borrowers to funding of private financial institutions, such as microfinance organizations in rural areas, credit cooperatives, leasing companies and banks. As Isayeva noted, this will provide financing for small, medium and large-sized businesses in the countryside.
Along with that, to improve the access to loans through KazAgro’s subsidiary – “KazAgroGarant” JSC loans guarantee system has been introduced in Kazakhstan for micro and small farmers who receive loans from microfinance organizations and credit cooperatives.
The Holding together with “Atameken” National Chamber of Entrepreneurs of Kazakhstan is develops programs for development of microloans in the rural areas, including training to rural people of the basics of entrepreneurship. The concept of institutional development of credit cooperatives has been developed. The Association of Credit Cooperatives was established.
According to the Vice-Minister of Agriculture of the Republic of Kazakhstan, “KazAgro” in order to improve the corporate governance has adopted a new Code of Corporate Governance designed in accordance with OECD requirements.
Gulmira Isayeva emphasized that close cooperation with the OECD is critically important to achieve joint long-term targets. To a large extent, the transfer of best practices and policies from the Organization has become the main engine of improvements in the areas of state and economic management in agriculture.
Organization of economic cooperation and development (OECD) is an international intergovernmental organization of economically developed countries that recognize the principles of representative democracy and a free market economy. OECD is a forum in which the member governments have the opportunity to discuss, develop and coordinate economic and social policies, share experiences, seek solutions to common problems and develop the agreed domestic and foreign policies. The organization was founded in 1948 as the Organization for European Economic Cooperation.
“KazAgro” National management holding” JSC implements the state policy on development of agribusiness complex of Kazakhstan by means of providing effective management of investment assets of companies included into its structure. The Holding includes “Food contract corporation” National company” JSC, “KazAgroProduct” JSC, “KazAgroFinance” JSC, “Agrarian credit corporation” JSC, “Fund for financial support of agriculture” JSC, “KazAgroGarant” JSC and “Kazagromarketing” JSC.
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