Kazakh banks up funding of non-resource based economy

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ASTANA. KAZINFORM - Kazakh banks increased funding of the non-resource based economy (manufacturing, transport and communications) by 22 percent to 1.2 trillion tenge (332.14 tenge = $1) in Jan. - Aug. of 2016, Finprom.kz analytical center reported.

The loan portfolio of this spheres of economy reached 1.9 trillion tenge at the end of August., trend.az reports.

Against this background, the profitability of the companies in the non-resource based sectors increased to 18 percent in Jan. - June 2016 compared to 9 percent in the same period of 2015.

The sharp increase in funding of the non-resource based sector started in 2015, when the volume of loans to manufacturing, logistics and telecom enterprises increased by 27 percent compared to 2014 to 1.7 trillion tenge. The in the previous two years, an annual growth in loans in this sector averaged 5 percent.

The bulk of the loans issued to the non-resource sector since the beginning of the year is for a period up to one year. However long-term loans amounts to 78 percent of the sector's loan portfolio.

Development Bank of Kazakhstan issued 73 percent of all long-term loans to the non-resource companies.

Source: Trend

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