Agricultural Producers Will Be Able to Obtain Preferential Loans Through Second-Tier Banks

Kazakhstan is introducing a new model of support for the agro-industrial complex. Instead of the traditional system of subsidies, the state is moving to a system of preferential lending. The goal is to improve access to financing for agricultural producers and to make budget funds more efficient.

The initiative, which the President announced earlier this year at a Government meeting, is now being put into practice. The Ministry of Agriculture has developed a new mechanism: financial institutions will be directly compensated for the difference between the market rate and the preferential rate. This allows borrowers in the agro-industrial complex to receive loans at 5% per annum.

The new scheme is expected to address several issues at once. It eliminates bureaucratic barriers, since thousands of farmers and dozens of regional administrations will no longer need to be involved in the subsidy process. It also reduces corruption risks and makes the use of budget funds more transparent and targeted.

At the moment, the pilot project is being implemented through JSC "Agrarian Credit Corporation". In 2025, 7.7 billion tenge were allocated from the republican budget for this purpose. The Corporation has already issued preferential loans to processing enterprises for replenishment of working capital in the amount of 44.3 billion tenge. In addition, preferential loan programs have been launched for feedlots, where the rate also does not exceed 5%.

If the pilot project proves successful, then starting from 2026, second-tier banks will also join the program. This will further expand access to cheap loans for everyone working in the agricultural sector.
The transition to this system will become an important step in the development of the industry and will make it more competitive.