Baiterek Took Yuan Loan: How It Will Help Kazakhstan's Farmers?

Kazakhstan’s Baiterek National Managing Holding has explained why it secured a major loan from one of China’s largest banks, Orda.kz reports.

In early March, it was revealed that Baiterek NMH had taken out a loan in Chinese yuan from the Industrial and Commercial Bank of China (ICBC) — a first for the holding. Initially, no details were provided, prompting Orda.kz to seek clarification.

According to Baiterek, the loan amounts to 430 million yuan (approximately 28.9 billion tenge at the current exchange rate). The repayment period is set at five years, with the option to extend twice for an additional five years.

The loan carries a floating interest rate of approximately 3% per year and has a five-year repayment period, with the option to extend twice for an additional five years. The funds will be used by the holding's subsidiary, JSC Agrarian Credit Corporation, to support agricultural producers exporting to China, explained Yersain Khamitov, Deputy Chair of the Board of Baiterek National Managing Holding.

The loan was taken in yuan to facilitate easier trade transactions for Kazakhstan's farmers working with Chinese partners.

The move aligns with Kazakhstan’s growing financial cooperation with China. The Kazakhstan Stock Exchange (KASE) recently began listing securities denominated in Chinese yuan.

Original Author: Nikita Drobny