Eurasian Development Bank (EDB) has opened a credit facility worth 1.5 billion rubles (1 ruble/ 5.29 tenge) for JSC KazAgroFinance to finance agricultural machinery deliveries to Kazakhstan preferably from the EDB member states, the bank‟s press office has said.
”In accordance with the contract purchase terms no less than 80% of the credit facility will be allocated for the purchase of machinery and equipment from the EDB member states, the bulk of which is to be directed towards the delivery of machinery and equipment from the Russian Federation (…) lending can be provided in tenge and rubles in the form of the EDB direct financing,” the press office said in a statement.
The contract was signed on June 29 this year by EDB Managing Director for Assets and Liabilities Dmitry Ladikov-Royev and First Deputy Chairperson of the Board of JSC KazAgroFinance Ainur Seytkasimova.
KazAgroFinance, founded in 1999 by Kazakhstan government, provides leasing and credit services in the agricultural sector using public funds, borrowed from foreign financial institutions as well as its own monetary resources. KazAgroFinance runs 14 branches and representative offices in all regions of Kazakhstan.
The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in 2006 to promote market economies, sustainable economic growth and develop mutual trade and other economic ties among its member states. EDB‟s charter capital totals $7 billion. The bank‟s member states are Armenia, Belarus, Kazakhstan, the Kyrgyz republic, Russia,Tajikistan. The bank finances investment projects worth over $5.3 billion in the member states.