Financing participants of credit partnerships in the framework of the Program for Productive Employment and Mass Entrepreneurship.

WHAT IS A CREDIT COMMUNITY? BLOCK 1 WHAT IS A CREDIT COMMUNITY? CU is a commercial organization that carries out certain types of banking operations without a license from the National Bank of the Republic of Kazakhstan. Credit unions are established in the form of limited partnerships on the basis of a foundation agreement and act in accordance with their charter.

MAIN OBJECTIVES AND PRINCIPLES OF WORK OF CREDIT UNIONS Provision of credit resources for CU participants (agricultural producers) in rural areas Uniting ACP Provision of simple financial services Getting the maximum for participants Reduction of the cost of services due to the profits received

CREDIT RESOURCES SUPPLY SYSTEM TO CT PARTICIPANTS IN THE FRAMEWORK OF THE STATE PROGRAM OF PRODUCTIVE EMPLOYMENT AND MASS BUSINESS PARTICIPANTS OF CU CREDIT UNION FINANCING FROM REPUBLICAN BUDGET PARTICIPANTS OF CU CREDIT UNION

BLOCK 2 HOW TO ORGANIZE CREDIT UNION?

The mechanism for creating a credit union and applying to the Corporation for credit resources Holding of the constituent general meeting of CU participants Consideration and approval of internal regulatory documents by the General Meeting of CU participants Consideration and adoption of the decision by the authorized body of the Corporation upon the application of the CU for the opening of a credit line Conclusion of credit documentation on a credit line of CU Applying for registration of a credit union in the Justice department Submission of application for opening a credit line in "Agrarian Credit Corporation“JSC

The main requirements of "Agrarian Credit Corporation" JSC for credit partnerships Number of participants is not less than 20 participants Absence of overdue debts for taxes and other mandatory payments to the budget Absence of overdue debt to STB and other financial institutions The size of the authorized capital of a CU should be at least 3 000 000 tenge Acceptance by CU participants of the joint responsibility for the obligations of CU and the Corporation, enshrined in the constituent documents of CU

Structure of the credit union Chairman of the Board Board of Directors Credit Committee General meeting of CU participants Audit committee Key positions of the staffing table of the credit union: 1. Chairman of the Board 2. Chief accountant 3. Credit specialist 4. The lawyer 5. Specialist in valuation of collateral 6. Specialist in loan administration Participant of CU Participant of CU Participant of CU Participant of CU Participant of CU

CREDIT UNIONS CARRYING ACTIVITIES IN THE TERRITORY OF THE REPUBLIC OF KAZAKHSTAN RATING AA - 2 CU RATING A - 13 CU RATING B - 20 CU RATING C - 29 CU RATING D - 23 CU RATING E - 20 CU RATING F-13 CU RATING G - 59 CU Total 187 CU

RATINGS of CU in 2015-2017

BLOCK 3 HOW TO BECOME A PARTICIPANT OF CREDIT UNION AND RECEIVE CREDIT RESOURCES UNDER THE STATE PROGRAM OF PRODUCTIVE EMPLOYMENT AND MASS BUSINESS

HOW TO BECOME A PARTICIPANT OF CREDIT UNION AND RECEIVE CREDIT RESOURCES UNDER THE STATE PROGRAM OF PRODUCTIVE EMPLOYMENT AND MASS BUSINESS STEP 1. Registration of the business of the future CT participant in the justice bodies (iE, PA, FE and APC) STEP 2. Obtaining the direction of the participant in the program to the Employment Center (for a business that carries out activity for less than 1 year, it is obligatory to receive training and get a certificate) *Note. If the participant of CU does not have sufficient collateral, the participant can apply to “KazAgroGarant “JSC for providing guarantees: For beginners - up to 85% For existing - up to 50% STEP 3. Enter into the membership of CU participants with a contribution to the authorized capital of CT min. 100 MCI and receiving a notice to the direction of the possibility of obtaining credit resources STEP 6. Acquisition of products for the intended purpose and development of agricultural business STEP 5. Signing of final credit documentation and obtaining credit resources STEP 4. Signing of the social contract in the Employment Center for the obligations to create additional jobs

Benefits of participating in the state Program of productive employment and mass entrepreneurship and obtaining credit resources through Credit Unions A low interest rate for CU participants is 6% per annum 0 tenge commissions for consideration The amount of provided credit resources has been increased from 6,000,000 tenge up to 18 000 000 The loan term is increased from 5 to 7 years

THANK FOR YOUR ATTENTION!