"Baiterek" NMH" JSC through its subsidiary "KazakhExport" Export Insurance Company" JSC has supported 37 Kazakhstani exporters since the beginning of this year, 10 of which received insurance support for more than 1 billion tenge during the period of the emergency regime, and 6 used tools for the first time company.
With the transition to the remote organization of labor, it was possible not only to save all KazakhExport's business processes, but also to increase the efficiency of interaction with customers, since many issues went into the online field.
According to the results of the first quarter of 2020, the volume of obligations undertaken by KazakhExport amounted to about 19 billion tenge, which is three times more than the same period in 2019, the amount of contingent deposits on pre-export financing and trade financing reached 10.9 billion tenge, the amount of supported contracts amounted to more than 50.7 billion tenge.
In addition, projects worth 29 billion tenge for 22 exporters in various industries and regions of Kazakhstan have been approved and are at the stage of concluding insurance contracts.
The successful cases supported by KazakhExport since the beginning of this year were told by the head of this company, Ruslan Iskakov. For example, according to him, the largest domestic producer of cable and wire products, "Kazenergokabel" JSC, not only actively participates in the government import substitution program, but also develops foreign markets.
- We have concluded insurance contracts with the plant under three export contracts for the supply of Kazakhstani products to Uzbekistan and Russia. Thanks to the insurance support of KazakhExport, a domestic exporter can safely ship its products to foreign counterparties with deferred payment, while significantly increasing the volume of supplies. The amount of insured export contracts amounted to about $ 21.5 million, said Ruslan Iskakov.
As part of the insured export contracts, the company opened a credit line at a second-tier bank to replenish working capital. KazakhExport provided funding through this line, thanks to which Kazenergokabel was able to arrange loans at a low interest rate. The total amount of pre-export financing provided amounted to more than 340 million tenge.
This year, for the first time, such enterprises as Fidelis Global LLP, which specializes in the production and sale of pipes and fittings, and Novus Polymer LLP, the largest plastic extrusion and molding company, which was provided with insurance coverage for the financing Bank under the loan Insurance tool, used KazakhExport support tools.
- With the help of this financial and insurance instrument KazakhExport, companies managed to obtain financing for working capital replenishment in the amount of 400 million tenge, which, in turn, made it possible to carry out additional procurement of raw materials and increase the volume of exported products to Uzbekistan and Tajikistan, Ruslan Iskakov informed.
Among the projects supported since the beginning of 2020, there are also food producers. For the first time, CG FOOD Central Asia LLP used KazakhExport tools, which is part of the large international corporation CG Corp Global LLP, which consists of 122 companies and has 76 representative offices in different countries. As part of the expansion of its production network, in December last year, the corporation opened a factory for the production of instant noodles in the Turkestan region.
CG FOOD Central Asia LLP received insurance of export credit agreements with respect to three foreign buyers in the Russian Federation. Now the exporter can safely ship its products to foreign counterparties with deferred payment, while significantly increasing the volume of supplies. The amount of insured export contracts amounted to about 130 million Russian rubles.
The plant began supplying Kazakhstan instant noodles in early 2020 and plans to gradually expand the geography of exports to the Russian Federation and Uzbekistan.
- The current situation is a huge test for domestic business and the country as a whole. The main task of Baiterek holding and the KazakhExport subsidiary in this difficult time is to support the growth of exports of non-primary goods, works, services in priority sectors of the economy and the formation of financial insurance and non-financial support for Kazakhstani enterprises. We continue to work actively, our regional managers are always in touch with manufacturers, local authorities and offer customers timely solutions for KazakhExport tools”, - summarized Ruslan Iskakov.
Since 2017, 112 domestic exporting enterprises from various regions of Kazakhstan, operating in the fields of engineering, metallurgy, chemistry, food and light industry, and the agricultural sector, have used KazakhExport tools. The total amount of insurance support for these three years amounted to 245.9 billion tenge, of which 97 billion tenge accounted for last year. By regions, the largest amount of supported contracts is in Almaty (71 billion tenge), Kostanay (48.3 billion), Pavlodar (29 billion) and Aktobe regions (17.6 billion).