Guarantee

As part of the implementation of the National Action Plan approved by Decree of the President of the Republic of Kazakhstan No. 353 dated September 16, 2023, developed in order to implement the Message of the Head of State, and including the activation of banks in financing the economy, «Baiterek» NMH JSC and Development Bank of Kazakhstan JSC under the leadership of the Ministry of National Economy expanded the existing Bank guarantee tool – developed new guarantee tools.

A guarantee is a form of security for contracts/agreements in which the bank guarantees the fulfillment of the client’s obligations to a third party.

The purpose of the guarantee

As part of the implementation of the Concept for the Development of the Financial Sector of the Republic of Kazakhstan until 2030, the DBK guarantee facility has been expanded to ensure access to medium-sized businesses to banks' credit resources when financing priority investment projects, as well as to support their solvency by reducing the cost of obligations

The target audience

medium-sized businesses implementing investment projects (including project financing) aimed at creating new and modernizing existing production facilities using credit funds from second-tier banks, as well as funds from other financial institutions.

DBK has developed the following guarantee mechanisms:

1. The current mechanism for providing DBK guarantees on market conditions

Minimum guarantee amount:

when financing an investment project – 7 billion tenge*
when financing an investment project in the field of food and beverage production – 3 billion tenge*
when financing an export operation – 1 billion tenge

Guarantee period:

for an investment project – no more than 20 years
for export operations – no more than 3 years, but not more than the term of the loan agreement

The source of payment for the risk commission when providing a guarantee is the borrower’s own funds

Guarantee amount:

Up to 100% of the loan amount

Purpose:

Investments and replenishment of working capital

*the amount of the guarantee may be less in case of simultaneous application of two or more guarantee mechanisms in one investment project

Current guarantee mechanism

2. The mechanism for providing DBK guarantees to business entities with subsidized risk fees

Minimum guarantee amount:

for an investment project – 3.5 billion tenge
for export operations – 1 billion tenge

Maximum guarantee amount:

for an investment project – no more than 20 billion tenge
for export operations – no more than 7 billion tenge

Guarantee period:

for an investment project – no more than 10 years
for export operations – no more than 3 years, but not more than the term of the loan agreement

The source of payment for the commission for risks when providing a guarantee is funds from the republican budget

Guarantee amount:

Up to 90% of the loan amount

Purpose:

Investments and replenishment of working capital

The mechanism comes into force 10 calendar days after the day of its first official publication

3. Механизм предоставления гарантии БРК субъектам предпринимательства с предоставлением льготного фондирования БВУ

Minimum guarantee amount:

for an investment project – 3.5 billion tenge

Maximum guarantee amount:

for an investment project – no more than 15 billion tenge

Guarantee period:

for an investment project – no more than 10 years

The source of payment for the commission for risks when providing a guarantee is the remuneration of the second-tier bank for the loan provided to the client

The preferential interest rate on a loan for a client in a second-tier bank should not exceed 11.5% per annum, taking into account the commission for risks when providing a guarantee from DBK.

At the same time, the commission for risks under the DBK guarantee should not exceed 4% per annum

Guarantee amount:

Up to 50% of the loan amount

Purpose:

Investments

The mechanism comes into force on January 1, 2025

Investment projects and export operations in the following industries are not subject to guarantee:

production of weapons and ammunition
production, distillation, rectification and mixing of alcoholic beverages
tobacco production
production of goods containing narcotic and psychotropic substances
wholesale and retail trade
car and motorcycle repair
art, entertainment and recreation, with the exception of multifunctional tourist complexes
exploration stage