ATFBank utilizes KZT7 bn disbursed by Entrepreneurship development fund Damu for support of SME projects

/KASE, October 23, 14/ – ATFBank JSC (Almaty), whose securities are officially listed on Kazakhstan Stock Exchange (KASE), today provided KASE with the following press-release: quote The limit in amount of KZT 7 billion approved for ATFBank JSC under the Support Program for SMEs engaged in the manufacturing industry (the Program) has been fully utilized. As the result of such utilization of the funds under the "Damu" Entrepreneur Development Fund’s Program the Bank has financed 49 projects. In the regional view the most interested entrepreneurs were from Almaty, Shymkent, Astana, Aktobe and Pavlodar. Also the Bank has financed a number of SME projects in Atyrau, Karaganda, Kokshetau, Petropavlovsk and other cities. "Such programs play an important role in encouraging the economy with credit funds. ATFBank JSC acts as an active intermediary in this cooperation between state and private sectors. In many global economies SME is an important element and I may even say the backbone of the system. Thus, it is essential to support business at all levels. This is a joint objective of the state, non- governmental structures and financial institutions", - Mr. Anthony Espina commented. Over 90% of issued loans are used for new financing which stands for growth of new projects and development of new business directions in SME. Having such an opportunity to get fixed assets, many borrowers plan to both improve quality of the current work places and create new ones. Further development will facilitate the increase of products assortment and develop the market outlets. Owing to favorable financing conditions a number of companies previously lacking fixed assets got an opportunity to acquire or build their own production facilities, plants, technical service stations, etc. For example, one of the top sausage products manufacturers in Astana plans to start construction of a new integrated plant for production of sausage goods being financed from the Program’s budget. Taking into account that upgraded equipment plays an important role in any business, one of the businessmen in the south of Kazakhstan plans to purchase new metal production line using provided funds. In general, industrial projects in different branches have been supported in the framework of the Program. The biggest share of loans is allocated to entities engaged in repair and installation of machines and equipment. The second place takes the financing of food and beverages production projects. The loans for creation of plants producing ferrous and concrete products in total take the third place. Besides, metallurgic, rubber, plastic and textile projects will be realized out of financing under the Program. Realization of these initiatives will help to develop domestic production of popular products in the future. As a reminder, within the scope of Support Program for SMEs engaged in the manufacturing industry the "Damu" Fund has allocated KZT 100 billion to 13 Kazakhstan banks with KZT 7 billion placed in ATFBank JSC for further extension of loans to businessmen on beneficial conditions. According to credit conditions a financing limit per an entrepreneur amounted to KZT 1,85 billion at the rate not exceeding 6% with the maximum term of 120 months. Herewith the banks do not charge any additional fees for loan issue and maintenance. unquote [2014-10-23]