Baiterek will distribute 8 trillion tenge towards bolstering small businesses and entrepreneurship.
In an effort to support the growth of large enterprises and drive national development, the Baikert Fund, a government-backed initiative, is providing guarantees to facilitate access to financing for businesses involved in significant projects. These guarantees reduce lending risks for financial institutions, encouraging them to extend credit to businesses operating in strategic sectors.
### Eligibility Criteria
To be eligible for Baikert Fund guarantees, businesses must primarily be large enterprises, legally registered and operating in Kazakhstan. Priority is given to businesses operating in strategic sectors such as manufacturing, infrastructure, energy, technology, and export-oriented industries. Applicants must also demonstrate sound financial management, comply with all local laws, and have projects that align with Kazakhstan’s national projects and development goals.
### Project Requirements
Projects must be large-scale, capital-intensive, and have significant potential impact on the economy. This could include infrastructure development, technology upgrades, or large production expansions. Emphasis is placed on projects that introduce innovative technologies, improve productivity, and contribute to sustainable development. Comprehensive project proposals including business plans, financial projections, and risk assessments are required.
### Scope and Mechanics of Guarantees
The Baikert Fund often covers a significant portion of the loan principal, reducing the lender’s risk exposure. There may be caps on the maximum guarantee amount per project or enterprise, aligned with risk management policies. Guarantee periods typically match the loan terms, often ranging from medium to long-term financing. The guarantees can serve as partial or full collateral, potentially reducing the need for additional physical assets as security.
### Expected Impact
The Baikert Fund’s guarantees have the potential to improve access to finance for large businesses, encourage large-scale investments, stimulate job creation, and promote innovative practices. Supported projects often involve new technologies and processes, enhancing competitiveness. On a broader scale, financing large strategic projects helps Kazakhstan achieve its targets in industrial growth, infrastructure, and sustainable development. Encouraging investments in various sectors reduces reliance on traditional industries and increases export potential, strengthening the country’s financial sector.
In conclusion, the Baikert Fund’s guarantee program for large businesses in Kazakhstan is a vital financial instrument designed to support strategic, large-scale projects that align with national economic priorities. By providing risk mitigation to lenders, it enables large enterprises to access crucial financing, stimulates employment, fosters innovation, and advances Kazakhstan’s broader development ambitions.
An entrepreneur seeking to invest in strategic sectors such as manufacturing, infrastructure, energy, technology, or export-oriented industries in Kazakhstan may find the Baikert Fund's guarantee program beneficial for their large-scale, capital-intensive projects. This program, designed to support national development, can potentially provide crucial financing, reduce lending risks, and help large businesses foster innovation and contribute to sustainable development in Kazakhstan.
