The Development Bank of Kazakhstan (a subsidiary of Baiterek Holding) provides clarification regarding the information presented in a recent press release issued by the Supreme Audit Chamber of the Republic of Kazakhstan.
The rates provided by DBK within the framework of the programs strictly correspond to the parameters of financial and economic justifications approved by authorized state bodies.
The administrators of the programs, the sectoral ministries, set the maximum remuneration rates. The calculation of maximum remuneration rates for the preparation of the budget application is based on the ratio of market and budgetary borrowed funds, as well as the weighted average credit rating.
For reference: to determine the remuneration rate, DBK uses international approaches to risk management, including a credit rating scale corresponding to the systems of the world's leading agencies: Standard & Poor's, Moody's and Fitch.
In this regard, the Supreme Audit Chamber has found no violations on the part of the Bank concerning to non-compliance of remuneration rates with the terms of government programs.
As the operator of government programs, the Bank attracts at least 1 tenge from non-budgetary sources (more than 16%) for every 1 tenge from the budget (0.15%) – from domestic or international capital markets. By the end of 2024, this proportion was significantly exceeded: for every 1 tenge of budgetary funds, 3 tenge were attracted from the market. Consequently, for these programs, the average cost of funding for the Bank is substantially higher than the funds raised from the budget (5-6%)
At the same time, the Bank, as a state development institution, does not aim to generate profit. Its operations are based on the principles of chargeability, timeliness, and repayment. This means that each tenge provided to the borrower must be returned on time with a minimum but sufficient remuneration rate covering the cost of funds raised and operating expenses. Additionally, DBK distributes its net profit annually through dividend payments and taxes to the national budget.
At the same time, according to the results of the audit conducted by the Supreme Audit Chamber, DBK has carried out work to amend the Bank's internal documents on the unification of remuneration rates. The Bank consistently upholds the principles of transparency in its operations and welcomes constructive engagement with government bodies, the media, and civil society.
