Halyk Bank to invest $1.1 bln in major Kazakh agriculture projects

ASTANA. Dec 12 (Interfax) - Halyk Bank of Kazakhstan is ready to invest 500 billion tenge or $1.1 billion in large agriculture projects, according to the head of state's press service.

President Kassym-Jomart Tokayev received Deputy Prime Minister Serik Zhumangarin, who reported on the progress in fulfilling Tokayev's request to increase processing volumes in the agro-industrial complex from 30% to 70% within three years.

"Today, the Agriculture Ministry has prepared a pool of 500 large potential projects in the agricultural sector costing 1.6 trillion tenge to be implemented in 2024-2026. For the first time, a second-tier Kazakh bank expressed readiness to invest about 500 billion tenge in the projects," the statement says.

The Agriculture Ministry on December 1 said the heads of Halyk Bank and financial institutions of the agro-industrial complex - Development Bank of Kazakhstan, Agrarian Credit Corporation, Baiterek holding - discussed preferential financing for the development of the processing industry in the agro-industrial complex and agreed that the rate for farmers on preferential loans should not exceed 6%.

The priority projects are the construction of dairy farms, vegetable storage facilities, development of livestock farming, irrigation, processing of grains, meat, fruits and vegetables.

Halyk Bank expressed its readiness to participate in co-financing government subsidized projects in the agricultural sector.

Halyk Bank is controlled by Dinara Kulibayeva, a daughter of Kazakhstan's First President Nursultan Nazarbayev, and her husband Timur Kulibayev through Almex Group JSC with 69.52%. The Bank of New York is a nominee shareholder of Halyk bank with a 28.49% stake.The shares of Halyk Bank are traded on the Kazakhstan Stock Exchange and GDRs on The London Stock Exchange and the Astana International Exchange (AIX).