Interbank lending | JSC "Development Bank of Kazakhstan"

Interbank crediting (hereinafter-the IBC) is a conditional financing of the DBK of end borrowers through second-tier banks.

The purpose of interbank lending (hereinafter – the IL) is DBK's financing of private enterprise projects in priority sectors of the economy, creation of new and expansion of operating enterprises in the processing industry, refinancing of current projects and making up of current assets.

The mechanism of joint lending allows you to bring affordable financing to small and medium businesses, while sharing credit risks and the procedure for monitoring the implementation of projects with commercial banks.

Since December 2014, the DBK also provides financing through commercial banks of state programs to support businesses, approved by the Government of Kazakhstan in 2014-2016:

Lending large businesses in the manufacturing industry (I and II tranche)
Support of domestic automakers.

According to the terms of interbank financing, partner banks are prohibited from investing the allocated funds in financial instruments and/or transactions with them, as well as in the foreign exchange market for the purchase of foreign currency. DBK conducts regular monitoring of the development of credit resources and their intended use.

Lending projects in manufacturing industry (I and II tranches)

The lending conditions for end borrowers approved by the Government Resolution No. 1276 of December 05, 2014 (1 tranche) and No. 124 of March 11, 2015 (2 tranches) are as follows:

Target group	large business entities implementing projects in the manufacturing industry
Nominal interest rate	not more than 6% per annum
Credit period	up to 10 years
Loan currency	tenge
Grace period for payment of principal debt	not more than 24 months
Financing limit per borrower	up to 5 billion tenge (with the exception of food industry projects where there is no limit)

List of 12 partner banks approved by the decision of the State Commission for economic modernization:

JSC "Halyk Bank of Kazakhstan"
JSC "Nurbank"
DB JSC "Sberbank of Russia"
JSC "Bank RBK"
JSC "Forte Bank"
JSC "Kazinvestbank"
JSC "ATF Bank
JSC "Jýsan Bank"
JSC "Bank CenterCredit"

Helps:

I. Support of domestic automakers

The funds of the National Fund and the Republican budget of the Republic of Kazakhstan are allocated to support domestic automakers through conditional financing of second-tier banks (hereinafter - STB) for lending to individuals - buyers of Kazakhstan-made passenger cars.

The total funding limit is 26 billion tenge from the national Fund, 8 billion tenge from the National budget and 20 billion from the National Bank of RK.

Second-tier banks conduct an examination of the solvency of end borrowers and decide on the issuance of loans. The queue for issuing loans to individuals is conducted by second-tier banks.

If the second-tier banks have idle funds to issue loans under the program, the second-tier banks send information to the Development Bank on approved applications of individuals. Under the budget of the National Fund of the Republic of Kazakhstan, the Development Bank checks the received applications for compliance with the conditions of the program (maximum cost of the car, loan term, nominal rate of return) and, within 3 business days, confirms the possibility of writing off of amounts by second-tier banks from a special account with the National Bank of the Republic of Kazakhstan. Within the allocated funds from the Republican Budget and the National Bank of Kazakhstan, there is no procedure for confirming the write-off of funds from a special account with the National Bank of the Republic of Kazakhstan.

Conditions of the program of preferential car loans:

Cost of 1 car	not more than 15 million tenge
Credit period	not more than 7 years
Loan currency	tenge
Nominal interest rate	up to 4% (annual effective rate (including the cost of insurance and clearance to guarantee vehicles) must not exceed 7.5%)

List of automakers participating in the Program:

LLP "Saryarkaavtoprom»
JSC "ASIA AUTO"

The list of models of passenger cars of domestic production for purchase by the End Borrower:

	ASIA AUTO JSC	SARYARKAAVTOPROM LLP
1	KIA Ceed	Hyundai Tucson
2	KIA Cerato	Hyundai Elantra
3	KIA Optima	Hyundai Sonata
4	KIA Picanto	Hyundai Santa Fe
5	KIA Rio	Hyundai i-30
6	KIA Sorento	Hyundai Grandeur
7	KIA Soul	Hyundai Genesis
8	KIA Sportage	JAC S3
9	KIA Stinger	JAC S5
10	Škoda Octavia	JAC J5
11	Škoda Rapid	JAC М5
12	Škoda Superb	Peugeot 301
13	Skoda Kodiaq	Peugeot 508
14	LADA 4*4 21310 (five-door)	Peugeot 3008
15	LADA Granta	Chevrolet Niva
16	LADA Xray	Hyundai Creta
17	LADA Vesta	Hyundai Accent
18	LADA Largus	Ravon Nexia R3
19	LADA 21214
20	УАЗ 220695-04
21	УАЗ Patriot
22	УАЗ Hunter
23	УАЗ 390995
24	УАЗ 374195-05

The list of banks participating in financing domestic automakers:

Bank	Limit within the NF RK, thousand tenge	A limit within RB RK, thousand tenge	A limit within NB RK, thousand tenge
JSC "Eurasian Bank»	7 310 000	3 875 000
SB JSC "Sberbank of Russia»	6 318 541	3 875 000	9 000 000
JSC "Halyk Bank of Kazakhstan»	5 300 000	2 875 000	6 000 000
JSC "Bank CenterCredit»	3 830 000	3 875 000
JSC " Forte Bank»	1 641 459	-
JSC "ATF Bank»	1 600 000	-
JSC "Bank VTB" (Kazakhstan)	-	1 500 000	5 000 000
TOTAL	26 000 000	16 000 000	20 000 000

The program is designed for 20 years and is based on the "revolving" loans : at the expense of funds received from the repayment of the principal by individuals who have received a loan, banks will issue new loans for the purchase of cars.

Archive

II. Support of domestic exporters

Funds of the national Fund of the Republic of Kazakhstan are allocated to support domestic exporters through direct lending and leasing financing of projects in the manufacturing industry. The total funding limit is 35 billion tenge in 2015 and 15 billion in 2016.

Conditions of the program of support of domestic exporters:

Term of crediting / leasing	up to 20 years
Nominal interest rate	not more than 6% per annum
Currency of crediting / leasing	tenge or other currency depending on the terms of the transaction
Provision for loan/lease	In accordance with the requirements of JSC "DBK" and/or "DBK-Leasing»

Support for the production of passenger cars

Funds of the national Fund of Kazakhstan are allocated to support Kazakhstan's manufacturers of passenger cars. JSC "BRK "provides JSC "NC "KTZ "or a subsidiary of JSC "NC "KTZ "that meets the requirements of the internal acts of JSC "BRK", a loan on the terms of intended use. The total funding limit is 5 billion tenge.

Conditions of the passenger cars production support program: