EBRD provides $45 million to Kazakhstan's Bank CenterCredit
The EBRD is providing a financial package of up to US$ 45 million to Bank CenterCredit, a long-term financial partner in Kazakhstan with 19 branches and over 100 outlets across the country.
The EBRD is providing a financial package of up to US$ 45 million to Bank CenterCredit, a long-term financial partner in Kazakhstan with 19 branches and over 100 outlets across the country, ebrd.com reports.
Over 60 per cent of the loan will be used to support lending to micro, small and medium-sized enterprises (MSMEs), particularly those run by women, outside the major cities of Astana and Almaty.
Bank CenterCredit has been an active partner under the EBRD's programmes for small businesses since 2014 with over 1,300 loans provided to individual businesses to date. It has also been participating in the Bank's Kazakhstan Women in Business programme (Kaz WiB), under which CenterCredit has extended US$ 20 million (in Kazakh tenge equivalent) to over 230 women-led businesses since 2015.
Consolidated efforts to support women's entrepreneurship by the government of Kazakhstan, which has committed significant funds to Kaz WiB, and the EBRD translate into impressive numbers - over 41 per cent of SMEs in the country (equalling 640,000 enterprises) are led by women today.
The EBRD Kazakhstan Women in Business programme improves access to finance and advice for women-led SMEs, providing credit lines, risk mitigation and technical assistance to partner financial institutions to improve the supply of financing. The programme also offers advisory services alongside mentoring, longer-term coaching and workshops to provide women entrepreneurs with the knowledge and confidence to establish and grow their businesses.
The project benefited from technical cooperation funds provided through the EU Investment Facility for Central Asia.
In 2017 the EBRD approved its new country strategy for Kazakhstan and signed a three-year Partnership Framework Arrangement with the country aimed at the modernisation and diversification of the national economy.
To date, the EBRD has invested over US$ 8.7 billion in the economy of Kazakhstan.
Source: Kazinform News Agency
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
relevant news
ADB: Kazakhstan's economy to grow 3.8% in 2024, 5.3% in 2025
Images | Depositphotos
According to a new Asian Development Bank (ADB) report, Kazakhstan's economic growth rate is projected to decline in 2024 due to a slowdown in the industrial sector caused by stagnant oil production but is expected to recover in 2025 with gains in mining and investment, reports Kazinform News Agency correspondent, citing the bank’s press service.
Economic prospects
ADB forecasts that GDP growth will slow in 2024 but recover in 2025. Growth is forecast to decline to 3.8% in 2024, with industry slowing due to stagnant oil production, before accelerating to 5.3% in 2025 as the expansion of the Tengiz oil field leads to higher oil production starting from the second quarter of 2025.
The prospects for Kazakhstan’s economic development look positive in the medium term," said ADB Country Operations Head in Kazakhstan Iskandar Gulamov.
However, the economy’s dependence on commodities makes such growth volatile-so structural reforms are key to bolstering the country’s economic resilience and sustainability," he added.
Despite a slowdown in 2024, economic growth is expected to be bolstered by consumer spending and investment demand. The anticipated growth in consumption is forecasted to moderate to approximately 4% in both 2024 and 2025 due to a slower increase in real disposable incomes.
Services growth is forecast to slow to 4.7% in 2024 after record growth in 2023 before rebounding to 4.9% in 2025, supported by trade, transport and hospitality, and trade facilitation between Europe and Asia. Industrial growth is forecast to slow to 3.5% in 2024, with smaller gains in mining, and accelerate to 5.7% in 2025 as oil production increases.
Investment growth in Kazakhstan is also projected to moderate, reaching 14.5% in 2024 and 9.0% in 2025, following the completion of significant infrastructure projects. Despite the support from state-sponsored housing construction initiatives and endeavors to attract foreign investment, these factors are expected to contribute to the overall moderation in investment growth.
Inflation rates
ADB forecasts that service prices are forecast to be the main source of inflation, rising 9.8% in 2024 and 8.1% in 2025 due to government-announced increases in utility prices.
The National Bank of Kazakhstan will gradually ease monetary policy and reduce the policy rate in line with the decline in inflation and inflationary expectations. However, rising utility prices and continued strong domestic demand will keep inflation above the National Bank's 5% target.
Caucasus and Central Asia economies
According to an ADB report, Caucasus and Central Asia economies will slow after the boost from re-exports and Russian migrant inflows in 2023. Growth in the subregion is forecast to fall to 4.3% in 2024, down from 5.3% in 2023 bouncing back to 5.0% in 2025.
In Uzbekistan, growth is forecast to moderate to 5.5% in 2024 and 5.6% in 2025 from 6% in 2023, as services, agriculture, and domestic demand cool on persistent inflation and slower growth in household income.
In the Kyrgyz Republic, growth is projected to moderate in 2024 and 2025 with smaller gains in construction and services. Inflation should decline under continued tight monetary policy.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.
7th meeting of the Committee for Cooperation of the Republic of Kazakhstan - European Union in trade configuration was held
Images | Ministry of Trade and Integration
On April 9, 2024, in Brussels the 7th meeting of the RK-EU Cooperation Committee in a trade configuration chaired by the Vice-Minister of Trade and Integration of the RK Kairat Torebaev and Acting Director of Directorate E in the European Commission's Directorate-General for Trade and Chief Advisor to the Director-General, Management with Southern Neighbors, the Middle East, Turkey, Russia and Central Asia Leon Delvauxб press service of the Ministry of Trade and Integration reports.
Speakers from government bodies of the Republic of Kazakhstan and the EU were connected online; representatives of the Ministry of Railways, the Ministry of Foreign Affairs, the Ministry of Finance, the Ministry of Justice, the Ministry of Agriculture, JSC CRTP QazTrade and JSC Kazstandard took part from the Republic of Kazakhstan.
At the 7th meeting of the Committee, a wide range of issues were discussed: trade and investment developments and trends; implementation of the trade section of the EPCA; implementation of the Ready4Trade Central Asia project; sanitary and phytosanitary measures, including expanding the range of Kazakhstani goods supplied to the EU market; list of export enterprises; recognition of disease regionalization measures in the EU; questions from the High-Level Mission of the Commissioner for Agriculture Wojciechowski.
The importance of interaction in the field of technical regulation, standardization, and metrology was noted.
Moreover, following the results of the 7th meeting, an agreement was reached on the arbitrators in accordance with Article 196 of the EPCA.
This information may not be reproduced without reference to Kazakhstan Today. Copyright of materials of News Agency Kazakhstan Today.