Evaluation of the mechanism of agricultural lending in Kazakhstan

Abstract

Objective is to evaluate the mechanism for lending to the agro-industrial complex in the Republic of Kazakhstan based on the analysis. The relevance of the chosen topic is determined by the priority direction of the agro-industrial complex for the economic development of the country, which is determined by the need to ensure food security of the country, increase the efficiency of agricultural production and sustainable development of the regions. Achieving these goals is impossible without organizing an effective lending mechanism for agricultural entities. Methods – quantitative and qualitative assessment methods, a comparative analysis method and an analysis of regulatory documents were used as methods. Results: the mechanism for lending to the agro-industrial complex at the present stage is considered.considers the lending mechanism for the agro-industrial complex at the present stage. Particular attention is paid to the activities of JSC Agrarian Credit Corporation. The credit products of the Corporation and the mechanism of its interaction with other financial institutions regarding lending to agricultural entities are considered. Conclusions: despite the development of agricultural lending in Kazakhstan, the current system does not provide a significant increase in the efficiency of the agro-industrial complex. To overcome existing challenges, it is necessary to modernize credit instruments, expand and strengthen the network of credit partnerships with the involvement of new sources of financing. Particular attention should be paid to the development of financial products that take into account the specifics of agricultural production, as well as the introduction of self-financing models that can reduce credit risks. The introduction of digital solutions will improve the availability and quality of services for rural entrepreneurs.