OREANDA-NEWS. January 28, 2010. Tsesnabank (Astana), listing on the Kazakhstan Stock Exchange (KASE), provided KASE with a press release, reported the press-centre of KASE:

Tsesnabank began to finance microcredit organizations under the Business Development Fund Damu's program for 2008-2012 in hopes to expand the sector in Kazakhstan.

At the end of the last year the Bank signed a Credit agreement on the conditional offering of fund's KZT1 bn.

The program allows for providing additional access for microcredit organizations to funds with the help of second-tier banks, which will boost bank operation and render help to end borrowers.

A new financing mechanism provides for regional distribution of funds and restriction of interest rates for the banks. Under this program the loans will only be granted to refill working capital to aid businesses and individuals.

Program operators emphasize the loans will be issued in the tenge at 14 % interest to financially stable micro-credit organizations, operating a year today or longer. The maximum loan will be KZT750 m.

"In the recent years Tsesnabank proved to be a reliable partner in implementation of state programs. We are delighted to once again cooperate with the Damu Fund, contributing to quality development of the domestic microfinance sector. Currently, there are over 700 operating micro-credit organizations, and they play a larger role year by year. We hope, our participation will  facilitate better operation of micro-credit organizations in the regions of Tsesnabank's presence", - Dauren Zhaksybek said.