1. National Small and Medium Business Development Institution of Kazakhstan

2. Presentation Plan Overview of Kazakhstan’s small business sector
Overview of microfinance sector
General information about the Fund
History of the Fund
Contemporary functions of the Fund
Cooperation with Partners in Korea

3. According to legislation of the Republic of Kazakhstan:
Small enterprises are individual entrepreneurs who employ not more than 50 people and legal entities that employ not more than 50 people and have total amount of assets not more than $
Medium enterprises are individual entrepreneurs who employ more than 50 people and legal entities that employ from 50 to 250 people and have total amount of assets not more than $
Microcredit organizations provide credits up to $78 000

4. Indicators of growth in quantity of small enterprises
1. Overview of Kazakhstan’s small business sector
Indicators of growth in quantity of small enterprises

5. Quantity of people employed by small enterprises
1. Overview of Kazakhstan’s small business sector
Quantity of people employed by small enterprises

6. Contribution of small business in GDP
1. Overview of Kazakhstan’s small business sector
Contribution of small business in GDP

7. Contribution of small business in incomes of government budget (taxes)
1. Overview of Kazakhstan’s small business sector
Contribution of small business in incomes of government budget (taxes)

8. Credits of banks to economy and small business
1. Overview of Kazakhstan’s small business sector
Credits of banks to economy and small business

9. 2. Overview of Kazakhstan’s microfinance sector
Dynamics of growth in quantity of microcredit organizations since 2004

10. Total amounts of microcredits provided
2. Overview of Kazakhstan’s microfinance sector
Total amounts of microcredits provided

11. Average interest rates on microcredits
2. Overview of Kazakhstan’s microfinance sector
Average interest rates on microcredits
2007
2006
2005
2004

12. Governmental support of entrepreneurship
3. General Information about the Fund
Governmental support of entrepreneurship
“DAMU” Fund
Financial support
Entrepreneurship
Development of infrastructure
Administrative support
Fiscal support
Information support

13. 3. General Information about the Fund
Established:
According to the resolution of the Government of the Republic of Kazakhstan of 26 April 1997 #665 “On creation of small entrepreneurship development fund” as a non-bank financial institution in form of joint-stock corporation
Objectives:
- Stimulate the development and economic growth of small enterprises in Kazakhstan
- Increase the efficiency of use of government funds that are allocated for small business support

14. 3. General Information about the Fund
Mission:
To assist qualitative development of small and medium businesses as well as microfinance organizations of Kazakhstan in the role of integrator and operator of financial and consulting services
Strategic goals:
Ensuring accessibility of national financing to all creditworthy
SMEs
Improvement of resource support for microfinance sector of the
state

15. 3. General Information about the Fund
The Fund employs 290 people operating in its headquarters in Almaty and in 16 branches throughout Kazakhstan
As of :
Assets – $715 mln.
Stockholder’s Equity – $270 mln.
Liabilities – $445 mln.

16. 4. History of the Fund IV stage: since 2008 I stage: 1997-2002
II stage:
III stage:
Unitary Integrator of services of national development
institutions and private businesses,
Operator of financial programs of the Government and
international organizations in Kazakhstan
Programs of project financing,
microlending, guaranteeing,consulting,
creation of representatives’ network
Direct lending to small enterprises,
Creation of branch network,
Conferment of financial agency status
Agency functions
(Programs of EBRD, ADB)

17. Main tasks and results of development
I stage (agency functions) –
Activity
Amount for small enterprises,
mln. $
Effect
Program of Kazakhstan’s small business of the European Bank for Reconstruction and Development
2 216
projects through 7 banks
Program loan of the Asian Development Bank
54,6
95 projects / 4719 workplaces
Program of actions on support of local producers by the means of state budget
22,7
14 projects / workplaces
Total:
 2 293 ,3

18. Financial resources allocated from state budget in 2002-2007
Activity
Year
Amount,
mln. $
Project financing and leasing
77,4
Program of small towns development for
12,5
Lending of small enterprises (including women-entrepreneurs) by the means of
state budget*
2002
2,5
Development of microlending system in Kazakhstan
91,7
Guaranteeing of credits provided by commercial banks to small enterprises
121,7
Total:
305,8
* Funds on this program were not directed on capitalization of the Fund

19. IV stage of development – Contemporary functions of the Fund
In the end of 2007 a number of conceptual changes were made in the Funds operations:
The Fund started supporting not only small but also medium-sized enterprises
The Fund transformed from financial institution to managing operator of the funds provided by the government for business support
The Fund started developing and realizing new ways of operations on financial and consulting support of small and medium-sized enterprises (Program of distribution of the funds in commercial banks for further lending to SMEs)

20. Projects financed in 2007 in sectorial view
5. Contemporary Functions of the Fund
Projects financed in 2007 in sectorial view
Financial services (MCO) 21%
Agriculture 5%
Industry (Production sector) 28%
Other services 28%
Transport and communication 15%
Construction 3%

21. 5. Contemporary Functions of the Fund
Program of distribution of the state budget funds in commercial banks
During the first quarter of million dollars were distributed
The Fund is cooperating with 7 banks:
Bank TuranAlem
Kazkommertsbank
Bank CenterCredit
Caspian Bank
Alliance Bank
Eurasian Bank
Tsesna Bank
Terms of the program (for SMEs):
Loan size – up ot $1 mln
Loan term – up to 7 years
As of 1 May projects of SMEs have been financed for total amount $399,5 mln.

22. 12% 14% Instruments of Fund “Damu” on financial support of SMEs
(Proposed variant for further realization)
Program of co-financing
with banks
417 Fund +
417 Banks $ mln.
Program of co-financing “Damu-Regions”
230 mln. $ mln. $
Program of direct financing
“Damu - Koldau”
80 mln. $
Regional authorities
Fund
12%
14%
10,5%
Goal: diversification of SMEs’ sectors
Object: profitable investment projects of SMEs in real sector of economy
Goal: SME support
Objects: All SME projects without limitations but with regulation of interest rates
Goal: sustainable financing of small businesses with regional priorities
Objects: projects of small business in economy sectors that match regional priorities

23. Cooperation with Partners in Korea
DAMU is interested to establish contacts with partners in Corea, special interest is in cooperation with Small and Medium Business Corporation (SBC)
Interest of DAMU is connected with successful experience in implementation of finance programs (Industrial Restructuring) and non-finance (information services, programs of marketing assistance, surveys, trainings) and activity of overseas offices

24. Thank you for your attention!
Head office
050004, Kazakhstan, Almaty, Gogol st., 111
Phone: (727) ,
Fax: (727)
Web-site: