The Senate discussed the mechanisms to support business in the run-up to the Parliamentary hearings on “Economic Development in the New Realities: Improvement of State Policy and Legal Regulation for the Development and Support of Small and Medium Business in Kazakhstan”. The event was arranged by the Committee on Economic Policy, Innovative Development and Entrepreneurship of the Senate of the Parliament. Issues of SMB support and development were discussed with representatives of the National Bank of the Republic of Kazakhstan, the Agency for Regulation and Development of Financial Market, the Association of Financiers of Kazakhstan, second-tier banks, as well as the Commissioner for the Protection of the Rights of Entrepreneurs.
According to senators, there are numerous barriers on the part of financial sector entities in lending to SMBs and microbusiness. Deputies have repeatedly raised this issue. As stated by official statistics and the Association of Financiers, no more than 4% of SMB are credited for business. This share is insignificant. Senate deputies are not satisfied with the existing situation and invite financial institutions to consider the possibility of increasing the scope of lending to small and medium-sized businesses, including microbusiness.
In the absence of security assets and due to other difficulties in obtaining loans, microentrepreneurs are forced to take out consumer loans at 25%. Deputies propose to bring the appropriate amendments and additions to the applicable legislation for expanding microbusiness lending.
Senators say that the key reason for SMB bankruptcy last year was the lack of financial resources. Thus, parliamentarians recommend financial institutions to develop mechanisms for maintaining and saving enterprises from closure.
In discussing the problems of entrepreneurs, the Committee members have once again drawn attention to the situation with the coronavirus, which adversely affected business development. Deputies offer financial institutions to look into taking the following measures, namely: deferring loan payments, exemption from penalties and fines on loans for the pandemic period, reducing bank fees for future loans, easing the conditions for fulfilling loan liabilities and softening payment schedules.
