“The problem of agrarian business lending” – perhaps anyone who is somehow related to this area, I heard these words. Well I do not want to private financial institutions to take such a “risk” – to lend to the villagers, though, if you think carefully: it is difficult to find a more responsible person than the worker village.
Most likely, the banks are aware of this, and want to trust the average Altynbek Niyazhanovichu with its agronomic education, 3 thousand hectares of fertile land, a team of 30 tested children and a great desire to build a business in a European: a seeder with grain taker of two or three Silo with a new farm with foreign Cows. But bankers certainly want Altinbek to have the guarantee.
The main guarantor and guardian
And it is not in the mortgaged property – give any guarantee himself Altynbek that receive high yields this fall. And the next? Three years later, and after five? After all, it’s no secret – the money for the village – long-term money.
It turns out that Altynbek, never thought about urban life, is forced to buy an apartment to have a decent deposit, must earn a reputation over the years in the bank, but the slightest delay crosses her time.
The situation might seem hopeless, if not for one fact: the government sees in the agricultural sector of the country has good potential. The policy speeches of the President is always a red thread is the idea that Kazakhstan, with its land resources, with a rich tradition of agriculture should be the breadwinner in the Central Asian region.
This line of leadership of the country gives a good chance of farming not only to stand up, but also to increase the production in the village up to western standards of high productivity. And in fact, rural business remains in the custody of public institutions only. It all: the desire of the state to develop the industry, the desire of farmers to develop – has resulted in a structure as a national holding KazAgro, with its subsidiaries. On the one hand – as independent financial institution, on the other – state control over the organization of work. The creation of this structure has resulted in an interesting result – the repayment of loans granted through Kazagro significantly higher than in the second-tier banks.
We have repeatedly investigated this phenomenon. The reason once again to speculate on this subject was to obtain information on the financial activities of one of the subsidiaries “KazAgro” – “KazAgroFinance” (CAF).
Good turn deserves another
This writer was surprised to learn that in the 14 years of its existence, CAF supported the villagers totaling $ 400 billion. Tenge. How effectively we are working to return the bad debts? It is, as always, will help us to understand the numbers. Here, of course, need to make a footnote on the specifics of the agricultural sector, where, as they say, “the chickens before they are hatched”, that is the main debt repayments fall due after harvest. Take the corresponding figures of the last two years. However, I will not download the reader billions, dispense percentages. Thus, in the first half of last year, the share of problem projects was 12.3% of the total loan portfolio of CAF and the end of the year it was reduced to 8.5%. This year the figure is already up to six months was 9.6%, that is, following the trend, and given the optimistic forecasts for the coming harvest company, KAF confidently expects a significant decline in the share of problem projects by the end of 2014.
The end justifies the means
Of course, the efforts of the staff to work with Kafa “malicious” debtors, and a good harvest this year will give the expected result, but not “close duty” and show the beautiful figure – the main goal of the Company. The first problem – the enterprise investment project, which at one time hoped for, where people work – should work, and possibly save your profile.
A striking example of such a socially-oriented policy – LLP “Atamekenrybprom” about which we wrote earlier. The ambitious project, hopes, sight export expensive in demand on the European markets and production … But the idea of some place failed. Did not help any deferral or restructuring. When it became clear that the money will not return because of LLP “Atamekenrybprom” for over 5 years has not made a single payment since the beginning of the financing, the decision was made – to cover the costs the collateral for which the loan funds were spent – that is, by the plant. Which was carried out in 2013 in compliance with all legal norms. But the plant – not a sack of potatoes: a buyer so quickly it is not found.
Nevertheless, in 2013, together with the Kyzylorda region was revived activity previously idle fish plant in Aral. During the recovery of industrial activity at the plant was saved 120 jobs, including those involved in all stages of harvest and delivery of raw materials to the plant. Thereby significantly reducing the question of acute social tension and given impetus to the rapid development of the fishing industry in the region, as a result, improves the quality of life of its inhabitants.
Also, with the active collaboration with the leadership of the West Kazakhstan region was restored activity of the plant for the production of sunflower oil in Uralsk, through the transfer of equipment in long-term lease-purchase LLP “TerektiMayKombinaty.” During recovery operations at the plant was kept about 100 jobs. The company has established technology of sunflower oil and a system of quality control that are not inferior to Western European producers of vegetable oil.
Not stopping there
In 2014, KAF continued active work on return on previously issued debt funds, so for 8 months of 2014 is collected in cash 1 billion. 47m. Tenge. Total for 2014 financial institution you plan to collect funds of 1.5 bln., Which is not far off.
The Company is working to restore activity slaughterhouse in Pavlodar. Currently, the Company is considered treatment of the investor on the acquisition of equipment slaughterhouse, and the end of 2014 will be to commission a production operation. Also this year, the Company undertook measures to overcome the crisis of financial and economic activity of pond culture in g.Chilik Almaty region – a company engaged in the cultivation and production of valuable species of fish (sturgeon, trout and others.). The planned activities will be implemented by the end of 2014. There is still a big problem project dairy farm in Kostanai region, on which we are working to restore the production and output of its design capacity.
I should add that KAF is actively working on the implementation of the state program “Agribusiness 2020”, which to date involved 43 problem projects, for a total principal amount 8, 2 billion. Tenge. The existing program of state support of the villagers, providing substantial assistance not only to small agricultural producers, but such a large well-known companies as “Yesil-Agro” and “Agri Өtes” who are currently engaged in the final stage of preparation of documents for participation in the program.
The conclusion? Soon in the cafe does not remain a problem loan? Well if so, but, again, this is not an end in itself. The main thing is to live project, the idea of someone, because if once it has been approved by the credit committee, then it – working!