National Managing Holding KazAgro announces performing public budget loan obligations

/KASE, 22.12.2014/ – National Managing Holding KazAgro JSC (Astana), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has by an information notice informed KASE that: quote National Managing Holding KazAgro JSC has repaid a public budget loan in the amount of KZT40,000 mln in full. The said fulfillment of obligations to the state budget took place on December, 19, 2014. Recall that in accordance with the Law of the Republic of Kazakhstan of December 3, 2013 "On Republican Budget for 2014 - 2016" in 2014 within the budget program 023 "Lending to National Managing Holding KazAgro JSC aimed at carrying out activities in support of agribusinesses National Managing Holding KazAgro JSC received the public budget loan in the amount of KZT40,000 mln up due December 20, 2014. The said credit facility has been allocated in the form of loans between the three subsidiaries of National Managing Holding KazAgro JSC and commercial banks. Public budget loan disbursements made up KZT40,000 mln or 100% of the plan, including: NC Food Contract Corporation JSC – KZT13,042,052,800 (100%), Agrarian Credit Corporation JSC – KZT6,457,947,200 (100%), Fund of Financial Support for Agriculture JSC – KZT500,000,000 (100%) and commercial banks – KZT20,000,000,000 (100%). Thus, 2,323 applications were funded for a total cultivated area of 3,453.5 thousand hectares. It should be noted that due to the adverse weather conditions prevailing during the harvesting campaign of 2014, a number of agricultural producers failed to fulfill their obligations to the subsidiaries of National Managing Holding KazAgro JSC on time. In this regard, subsidiaries of National Managing Holding KazAgro JSC were forced to use their own or borrowed funds for the timely fulfillment of obligations to the state budget. However, within the framework of financing the spring sowing campaign secured by the guarantees of socio-entrepreneurial corporations in 2012-2013 with the use of the public budget loan there is an outstanding debt of agricultural producers to NC Food Contract Corporation JSC in the amount of KZT2,983,901,363 (KZT3,221,186,700 after interest and penalties). unquote [2014-12-22]