Joint Stock Company Fund for Financial Support of Agriculture (FFSA), a government-owned institution that provides credit and insurance services on a retail and wholesale basis in rural Kazakhstan, has reportedly pledged to allocate KZT 3 billion (USD 20 million) for microfinance in rural areas of Kazakhstan in 2012. The money will be disbursed as microloans to individuals and legal entities working in rural areas. Borrowers will be able to apply for loans of up to KZT 1 million (USD 6,760) for a maximum of three years. The loans will carry an annual interest rate of 9.5 percent, and the effective interest rates will not exceed 10.2 percent per year. In 2011, FFSA reportedly disbursed KZT 2.9 billion (USD 19.6 million) in microloans under the Rural Microcredit program that enabled the employment of 5,228 people. The 34 MFIs in Kazakhstan that reported 2010 data to the US-based nonprofit Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 150.2 million disbursed to approximately 68,200 borrowers. By Charlotte Newman, Research Associate About JSC Fund for Financial Support of Agriculture (FFSA) Established in 1998 as the State Fund for Financial Support of Agriculture, Joint Stock Company Fund for Financial Support of Agriculture (FFSA) provides credit and insurance services in rural areas of Kazakhstan. In 2007, FFSA became an affiliated company of the government-controlled JSC National Holding “KazAgro” and now provides services to rural households and financial support to microcredit organizations. In 2010, FFSA reported the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 90.3 million, a gross loan portfolio of USD 70.3 million, approximately 19,000 borrowers, return on assets of (ROA) 1.69 percent and return on equity (ROE) of 1.95 percent. Sources and Additional Resources: Caspio Net: “In 2012 Micro Loaning in Rural Areas Will Receive 3 Billion Tenge from Kazakhstan Budget,” http://caspionet.kz/eng/business/In_2012_micro_loaning_in_rural_areas_will_receive_3_billion_tenge_from_Kazakhstan_budget_1330924187.html MicroCapital.org story, October 18, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan Equivalent of $2m in Local Currency to Frontiers Microlending to On-Lend to Microfinance Institutions in Kyrgystan, Tajikistan, Kazakhstan,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-equivalent-of-2m-in-local-currency-to-frontiers-microlending-to-on-lend-to-microfinance-institutions-in-kyrgyzstan/ MicroCapital.org story, January 20, 2009, “MICROCAPITAL STORY: Kazakhstan Prime Minister Calls for Schemes to Improve the Functioning of MicroCredit Organizations in Rural Areas; Appoints Deputy Prime Minister to Coordinate the Efforts,” https://www.microcapital.org/microcapital-story-kazakhstan-prime-minister-calls-for-schemes-to-improve-the-functioning-of-microcredit-organizations-in-rural-areas-appoints-deputy-prime-minister-to-coordinate-the-efforts/ MicroCapital Universe Profile: JSC Fund for Financial Support of Agriculture https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=JSC+Fund+for+Financial+Support+of+Agriculture Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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