Manufacturing industry

According to the Concept for the Development of the Manufacturing Industry of the Republic of Kazakhstan for 2023 - 2029, approved by Decree of the Government of the Republic of Kazakhstan dated December 20, 2018 No. 846, as amended and supplemented by Decree of the Government of the Republic of Kazakhstan No. 259 dated March 28, 2023, financing is carried out on the following conditions:

1) Financing for manufacturing industry projects is provided by the Industrial Development Fund joint-stock company to subjects of industrial and innovative activities, leasing financing of projects, including those involved in the program of joint actions in the field of international industrial cooperation, projects for the creation of new production facilities and the modernization of existing production facilities.

Budget funds are allocated by increasing the authorized capital and/or budget lending to the Industrial Development Fund joint-stock company to finance projects in light industry at a remuneration rate of no more than 3% per year for final borrowers.

If it is necessary to increase the volume of financing for manufacturing industry projects, financing is allowed at a rate of no more than 9% for the final borrower when mixing budget funds with those raised in a proportion in which the share of budget funds is at least 70%, depending on the rate of attraction of other funds.

The subject of industrial-innovative activity ensures participation in cash in the implementation of the project in the amount of at least 15% of the total amount of financing (for projects aimed at increasing the localization of production, participation in cash in the implementation of the project in the amount of less than 15% is allowed). The amount of financing must be at least 80 million tenge (for light industry enterprises at least 50 million tenge). Financing is provided for a period of no more than 20 years.

To receive financing, the subject of industrial and innovative activity submits to the Industrial Development Fund joint-stock company a package of documents, the list of which is approved by the internal documents of the Industrial Development Fund joint-stock company. The procedure and terms for providing financing are determined by the internal regulations of the Industrial Development Fund joint-stock company.

2) As part of leasing financing, support will be provided in the following areas:

Renewal/modernization of cars and special equipment; renewal of the convoy of agricultural machinery and buses through the mechanism of leasing financing of the Industrial Development Fund joint-stock company. Leasing financing is provided in tenge for cars and special equipment for a period of no more than 7 years, the remuneration rate for applicants should be 7% per year, while the ratio of budgetary funds and other funding means of the JSC IDF should be 80/20. The advance payment is at least 15% from the local budget or the lessee's own funds (in the case of repayment of lease payments from the republican or local budgets, financing without an advance payment is allowed). At the same time, for bus models produced by a method that includes welding and painting operations, the advance payment is at least 5%;

Renewal of the convoy of vehicles involved in freight transportation. Leasing financing of vehicles involved in freight transportation is provided in tenge through the Industrial Development Fund joint-stock company for a period of no more than 7 years, the remuneration rate for applicants should be 7% per year, with the ratio of budgetary funds and other means of funding of the Industrial Development Fund joint-stock company should be 80/20. The advance payment is at least 30% from the local budget or the lessee's own funds (in case of repayment of lease payments from the republican or local budgets, financing without an advance payment is allowed);

Vehicles on lease , with the exception of agricultural machinery (hereinafter referred to as motor vehicles), is provided in tenge through the Industrial Development Fund joint-stock company for a period of 3 to 5 years with a remuneration rate for applicants of 3% per year. The advance payment must be at least 30% (in the case of repayment of leasing payments at the expense of the National Road Management Operator, with 100% state participation in the authorized capital, exercising the powers established by the Law of the Republic of Kazakhstan "On Highways", financing without an advance payment is allowed). Leasing financing based on the mechanism of public-private partnership is allowed. Sources of leasing financing will be funds from the republican budget;

Leasing financing can be used by subjects of industrial and innovative activities, government agencies, local, central and state executive bodies, institutions, state-owned utility enterprises with the right of economic management and state-owned utility enterprises of the Republic of Kazakhstan, the National Operator for the Management of Highways, with 100% state participation in authorized capital, exercising the powers established by the Law of the Republic of Kazakhstan “On Highways”.

Renewal of the convoy of domestically produced medical equipment in tenge through the Industrial Development Fund joint-stock company for a period of no more than 7 years with a remuneration rate for applicants of 3% per year. Budget funds are allocated by increasing the authorized capital and/or budget lending to the Industrial Development Fund joint-stock company. The advance payment is at least 30%. In case of repayment of leasing payments at the expense of the republican or local budgets, financing without an advance payment is allowed. Leasing financing of medical equipment can be used by healthcare entities: local executive bodies, government agencies, state-owned utility enterprises with the right of economic management and state-owned utility enterprises, state-owned utility enterprises of the Republic of Kazakhstan, as well as medical organizations with private ownership.