January 20, 2012

EDB invests over US$100 million on Kazakhstan's grain projects

The Eurasian Development Bank (EDB) has funded Kazakhstan's agricultural sector with more than US$100 million for the past year.

Thus, APK-Invest Corporation's credit line alone has increased to US$75 million. The allocated loan funds will be channeled for financing the sowing and harvesting campaigns alongside the purchase and sale of grain for export.

The EDB is an international financial institution established by Russia and Kazakhstan in January 2006 to facilitate the development of market economies of the member countries and the expansion of mutual trade and economic relations.

Ella Baibikova, Deputy Head of Analytical Department, Eurasian Development Bank said, "We saw a record grain harvest in 2011. This is an export product for Kazakhstan. First of all, we finance export operations. And our funding not only supports agricultural producers, but also gives them an opportunity to enter foreign markets."

According to EDB, such projects contribute to the expansion of mutual trade between the bank's member countries and have a positive impact on the development of single grain markets in Eurasia.

"The bank's main mission is to support economic integration and that agricultural projects fit it perfectly," Baibikova added.

In 2011, Kazakhstan harvested 26.9 million tonnes of grain in net weight. Analysts said that the last time the country had a harvest of this magnitude was in 1986, but at that time crop areas were one and a half times greater than in 2011. The average yield of grain was 16.9 hundredweights per hectare last year.