LOAN FOR THE CONSTRUCTION OF MEGA SILK WAY WILL BE REPAID AHEAD OF SCHEDULE
One of the reasons for the early repayment of a loan was a reaction of the people of Kazakhstan to the fact that money for the construction of the shopping and entertainment center on the EXPO territory was partially obtained from the pension fund.
In the next two months MEGA plans to repay one third of the loan (5 billion tenge).
MEGA plans to prepay the loan for the construction of Mega Silk Way in Astana, obtained from Baiterek Development JSC. This was reported by a press service of the MEGA shopping center chain in response to a request from informburo.kz. One of the reasons for the early repayment was a reaction of the people of Kazakhstan to the fact that money for the construction of the shopping and entertainment center on the EXPO territory was partially obtained from the pension fund.
«The decision on early repayment of the loan was made for two reasons. The first reason is a very high loan rate of 18.5%, which is much higher than in the commercial banks. The second reason is the concerned reaction of the people. We emphasize that the funds for the construction of Mega Silk Way were received from the Baiterek Development Fund, which, in its turn, obtained them from UAPF through DBK,” the representatives of the press service explained.
In the next two months one third of the loan will be repaid (5 billion tenge). The company plans to repay the remaining 10 billion tenge within 2−3 years. The sources of repayment are rental payments, as well as the company’s own funds.
«The loan that we received from the Baiterek Development Fund was issued in the amount of 15 billion tenge at 18.5% per annum for 15 years. At present, Mega Management JSC is discussing a possibility of an early repayment of this loan,” the press service stated.
In August, the representatives of DBK explained that they had to use the pension savings of the Kazakhstani people for the construction of MEGA Silk Way on the EXPO-2017 territory due to a change in the exchange rate of the national currency. As it was informed by the company, there was a shortage of cash in the company because of currency devaluation.
In February 2016, it was reported that 65 billion tenge from UAPF will be used to restructure the loans of DBK. As the Chairman of the Board of the Development Bank of Kazakhstan Bolat Zhamishev explained, the funds of UAPF will be mixed with the bank’s funds and offered to borrowers on acceptable terms.
It was also reported in August that 30 billion tenge from UAPF was used to finance export projects.
The volume of financing from UAPF granted to the partially state-owned companies increased by 349 billion tenge or by 70% during the year.
Quasi-public organizations use these funds to finance such important projects for the economy as leasing financing of domestic freight wagons, financing of the construction of hydroelectric power stations, and financing of priority agro-industrial projects, etc. At the same time, investment of pension assets is carried out on a return basis at market interest rates.