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Abstract
Financing agricultural producers is one of the most acute problems within
the entire scope of economic reforms in Kazakhstan. State financial support
for agriculture in Kazakhstan is episodic in nature, small in size, and seldom
reaches the target recipients, while the commercial banks are reluctant to
give credit to agricultural producers. Although Rural Credit Partnerships
(RCP) are very promising credit institutions for the agricultural sector, there
are a number of challenges to their development. This study is organized in
two parts: the first part analyzes the RCP membership status among
corporate farms; the second part analyzes access to RCP credit by members
of rural credit partnerships (both corporate and individual farms). The results
of the first part of the analysis demonstrate that large-scale corporate farms
with bank credit history are more likely to be members of RCPs. The second
part of the analysis shows that the purpose of a loan requested from the RCP
significantly affects the probability of a member to have access to RCP
credit.