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Kazagro plans to create Agrobank

Almaty. June 2. Kazakhstan Today - National Holding Kazagro plans to create JSC Agrobank. The chairman of the board of Kazagro Alihan Smailov said during II Central-Asian fruit-and-vegetable forum Kazagrofood-2008 on Friday, the agency reports. "Preconditions for creation of Agrobank are, first of all, growing demand from agricultural producers for accessible long-term financing," A. Smailov said. He noted that for the last years the share of agriculture in credit portfolio of the banks of the second level has decreased. "The share of agriculture in credit portfolio of the banks of the second level has decreased from 12 % in 2003 to 3.6 % in 2007, he specified. Kazagro chairman considers minimum two-three years are required for creation of such a bank. "The government has not accepted final decision on necessity of creation of the bank. We should receive license of the Agency for Financial Supervision for realization of other types of bank's services and do some re-structuring of our affiliated structures," he explained. According to the chairman of Kazagro board, some opponents of the idea of creation of Agrobank state that the bank can go bankrupt by analogy of Agroprombank that earlier functioned in Kazakhstan. Four affiliated Kazagro organizations: Agricultural Credit Corporation, KazAgroFinance, Fund of Financial Support to Agriculture and Food-Contract Corporation - have already offer some bank services. Kazagro plans - association in Agrobank of some crediting functions of these four affiliated structures. "They have Agency for Financial Supervision licenses for crediting of agriculture, and the level of return of credits is more than 99 %. These are stable enough and effectively functioning structures, therefore, it is wrong to say that this bank will necessarily go bankrupt as it concentrates all risks in one sector," A. Smailov explained.

Resourse: Kazakhstan Today

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