5.5 billion tenge were allocated for the preferential car loans in the second-tier banks

Commercial banks received funds in the following amounts:
Halyk Bank of Kazakhstan JSC: 2 billion tenge,
SB Sberbank JSC: 1.5 billion tenge,
SB VTB Bank JSC (Kazakhstan): 2 billion tenge.

Let us recall, that in October of this year DBK announced the allocation of KZT 14.5 billion for financing the program of preferential car loans. Then the tranche was distributed between Halyk Bank of Kazakhstan JSC (4 billion tenge), SB Sberbank JSC (7.5 billion tenge) and SB VTB Bank JSC (Kazakhstan) (3 billion tenge).

For these purposes, the Development Bank of Kazakhstan, by issuing bonds, borrowed 20 billion tenge from Kazakhstan Sustainability Fund JSC (hereinafter - the KSF, a subsidiary of the National Bank), in accordance with the Resolution of the National Bank's Board No. 79 dated May 31, 2019.

Thus, since 2015, the DBK has sent five tranches of funds totaling 62 billion tenge to finance the program of preferential car loans. In particular, there were two tranches from the National Fund in the total amount of 26 billion tenge in 2015-2016, two tranches from the Republican budget in the total amount of 16 billion tenge in 2018-2019, and one tranche with the participation of the National Bank represented by KSF which was 20 billion tenge.

Lending under the Program has a revolving character: payments from the repayment of working loans are directed to the issuance of new loans. As part of the program, Kazakhstanis received loans totaling 81.8 billion tenge. Thanks to this recurring drawdown of funds, Kazakhstanis purchased 17,644 cars of domestic assembly on a preferential basis.
The DBK will continue to monitor the designated use of funds by participating banks, but in order to reduce the time for consideration of applications, the DBK will no longer conduct the procedure of approval of loan applications for compliance with the terms of the Program implemented with the participation of the Republican Budget and the National Bank of Kazakhstan.

In addition, DBK has recently signed relevant agreements with automakers from Asia-Auto and SaryarkaAvtoProm within the framework of the Program. Following the agreement, domestic automakers undertake to ensure the availability of vehicles in showrooms within 20 working days after the approval of the loan application by the second-tier banks. In this regard, the STBs must first receive confirmation from the automaker/dealer about the availability of the car in stock or the possibility of delivery within 20 working days, while the period of the application considered in the STB should not exceed 15 working days.

The changes did not affect the terms of granting preferential car loans to end-use borrowers. The criteria remain the same:
- nominal interest rate: no more than 4% per annum;
- loan term: no more than 7 years;
- loan currency: tenge;
- the cost of one unit of passenger vehicle: no more than 15 million tenge.

Development Bank of Kazakhstan JSC (DBK) is a national development institution for the modernization and development of the non-resource and infrastructure sectors of the economy of Kazakhstan, established in 2001. Main areas of activity: development of production infrastructure and manufacturing industry, promotion and attraction of foreign and domestic investments in the country's economy. DBK is one of the largest investment operators of the State Program of Forced Industrial-Innovative Development (SPFIID). DBK is a part of Baiterek National Management Holding JSC.

DBK Public Relations Department: 8 (7172) 79 26 87 (www.kdb.kz, facebook.com/kdb.kz, Twitter@KDBkz)

АО «Банк Развития Казахстана»
проспект Мәңгілік Ел, здание 55 А, н.п. 15 Z05T3E2 Астана
+7 (7172) 79 26 79