Debate Emerges in Majilis Over Creation of State “Agrobank”

A heated debate has emerged in the Majilis over the proposal to establish a specialized “Agrobank”, which deputies argue should become a key driver of agricultural development, Orda.kz reports.

Deputy Anas Bakkozhayev sharply criticized representatives of the National Bank, accusing them of trying to “confuse” parliament and derail the initiative.

Look, there's a not-so-good aphorism: 'If you can't convince, try to confuse.' So, with the Agrobank issue, you're trying to confuse us all,
 Bakkozhayev said.

Agrobank manages the accounts, monitors the flow of funds, builds trust, and reduces credit risk. It can earn money from logistics and trade, and use the profits to subsidize agricultural rates. Many banks around the world operate this way—it's cross-subsidization.

You don't fund the Agrarian Credit Corporation. You lend out small amounts of money at 0.1%, and the capital market tells them to find their own. Why are you ignoring the opinion of the 70 Majilis deputies and 20 Senate members who signed a letter in support of Agrobank?

In response, National Bank Deputy Chair Berik Sholpankulov cautioned that creating a state-owned, single-sector bank would require substantial capitalization.

He warned that it could prove unprofitable.

If you consider Agrobank as a universal bank, you're right; it can make money. But as a state-owned monobank focused on a single sector, it will require constant capital injections. By attracting deposits at market rates and issuing loans at non-market rates, it will always be unprofitable,
 he explained.

Loans in agriculture are always high-risk. When we requested capitalization, the bank couldn't provide it and went bankrupt. These risks need to be taken into account and mitigated,
 he added.

According to the National Bank, rather than establishing a new Agrobank, the government should focus on strengthening the role of the Agrarian Credit Corporation as a development institution.

However, Bakkozhayev remained unsatisfied:

I didn't receive a quality answer. If you say this is a development institution, then give the Agrarian Credit Corporation the authority to solve real problems. When a farmer comes and asks to release collateral, let them handle it confidentally.

Original Author: Artyom Volkov