Lending to the agrarian sector of Kazakhstan

2022

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DOI 10.1063/5.0107463
Data confidence 70 medium
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Abstract

The agricultural sector is one of the most important sectors for the development of national economies. As one of the priorities of the republic's economic development, agriculture has huge potential and large reserves. Kazakhstan's diverse climatic conditions make it possible to grow almost all temperate heat-zone crops and develop livestock farming. Between 2016 and 2018, agriculture accounted for an average of 4.5% of Kazakhstan's gross domestic product. However, for the third consecutive year, the share of the agricultural sector in the structure of the gross domestic product of the Republic of Kazakhstan has been insignificant but decreasing. Certain difficulties for the development of the agrarian sector are created by the conditions for lending, namely, the high level of interest, collateral requirements. But it is not possible to meet the needs in. The agrarians cannot meet their working capital needs from their own sources due to seasonality and duration of production cycle. International experience shows that there is no single approach to the formation of a credit system to support the agricultural sector. However, no one denies the need for government support for affordable credit and other sits species for agricultural producers. The analysis of the availability of credit resources for the agricultural sector is presented in this article, and weaknesses and strengths in lending to agriculture from various sources are identified.