The proposed project will aim at facilitating and increasing financing available to private farms, agribusiness companies and traders for purchasing/leasing key agricultural equipment, mainly Russian-made grain combine-harvesters and tractors but also Western made machinery, especially seeding implements.
Transition impact is expected to derive from the strengthening of linkages with agricultural equipment manufacturers and increase of interregional trade, as the majority of the equipment expected to be financed will be Russian-made. A direct positive impact on the availability and quality of grain is expected by usage of better and newer machinery. Better grain quality will enhance competitiveness of exports from Kazakhstan and allow the country to build further on its competitive advantages.
Privately owned agribusiness companies operating in Kazakhstan. The financing will be channelled ATF Bank, the fourth largest bank in Kazakhstan. The bank will leverage on the already established grain producing and trading clients and offer better access to finance and a wider range of banking services.
US$ 10 million to ATF Bank.
US$ 10 million.
The Bank will require ATF Bank to adhere to the Bank’s Environmental Procedures for Leasing and to the Environmental Exclusion and Referral List and this condition is one of the criteria for granting financing to the sub-borrowers. In addition, ATF Bank will require the sub-borrowers to comply with national standards for environment, health and safety and confirm to the Bank on an annual basis that these requirements have been met.
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