JSC “Industrial Development Fund,” with the support of the National Investment Holding ‘Baiterek’ and JSC “Damou Entrepreneurship Development Fund,” continues to implement a leasing financing program for the modernization of production facilities at existing small and medium-sized enterprises in the manufacturing industry. This was reported by the development institute.

The program, as noted by the fund, is aimed at increasing support for SMEs to facilitate their technical equipping/re-equipping, the acquisition of new equipment, and the expansion of enterprises’ production capacities.

Leasing financing under this program operates on a phased basis. The total budget for the first stage is 5 billion tenge. According to the FRP, additional information will be provided when funds are allocated for subsequent stages.

Key program terms:

1. The limit per lessee or group of companies is 1 to 300 million tenge.
2. Interest rate – 12.6 percent.
3. Financing term – 3 to 5 years.
4. Lessee’s contribution of own funds – 10 percent of the value of the leased asset.
5. The lessee’s period of operational activity must cover the full preceding calendar year.
6. The leased asset must be new equipment that has not been previously used, manufactured no more than 3 years prior to the application date, and fully cleared through customs (the purchase of self-propelled machinery or medical equipment is not permitted).
7. The seller/supplier of the leased asset must be a domestic manufacturer or an official distributor/dealer of the equipment manufacturer that is a resident of the Republic of Kazakhstan.
8. There is no grace period for interest payments; for the principal debt, the grace period is up to 6 months from the date of signing the Financial Lease Agreement.
9. Collateral: the leased asset, and a personal guarantee from the lessee’s beneficial owners in the form of a legal entity. No additional collateral is required.
10. Repayment schedule: equal monthly installments.

In addition to the above conditions, this program establishes disqualifying factors for obtaining lease financing, including the existence of overdue tax liabilities, activities related to the production of alcoholic or tobacco products, and other activities that do not meet the program’s requirements.

Under this program, the selection of potential applicants is conducted through the branches of JSC “Damou Entrepreneurship Development Fund,” which are located in all regions of the republic.

Funding for approved projects is provided by JSC “Industry Development Fund.”

Source: tengrinews.kz