Bnews.kz - EDB to finance supplies of agricultural machinery and equipment to Kazakhstan

Eurasian Development Bank (EDB) opened a US $10 million targeted loan facility for Kazakhstan’s Kazagrofinance. The respective agreement was signed today by Dmitry Krasilnikov, Member of the Management Board and Managing Director for Corporate Finance at EDB, and Nurlan Umirzakov, First Deputy Chairman of the Board at Kazagrofinance, the press service of the bank reports.

The funds will be used to finance supplies of agricultural machinery and equipment to Kazakhstan, primarily from the EDB member states. At least 60% of the facility will be used to cover supplies from these countries. The facility will be available for up to five years in the form of direct finance and/or guarantees from EDB.

The project is in line with EDB’s mission and strategy as it promotes sustainable economic growth in Kazakhstan by helping to upgrade its fleet of agricultural equipment and advance its agro-industrial sector. In addition, it will contribute to an increase in trade between the EDB member states.

In March 2013 EDB opened a US $20 million loan facility for Kazagrofinance to finance agricultural machinery supplies to Kazakhstan and in July 2012 it provided a US $10 million guarantee for five years to secure Kazagrofinance’s obligations before Deere Credit Inc under a loan provided to purchase agricultural equipment from this company in order to lease it out to Kazakhstan’s agro-industrial enterprises.