KazakhExport National Export Insurance Company and ForteBank have entered into strategic agreements to bolster Kazakhstani manufacturing industry exporters, promote international trade, drive demand for Kazakhstani products, and expand sales markets.
The key agreements signed include a General Agreement on Credit Insurance and an Agreement on Contingent Bank Deposits for Export Trade Finance. These agreements pave the way for Kazakhstani product importers and domestic exporters to receive support from KazakhExport, facilitated through ForteBank. This support will primarily focus on letters of credit and trade finance, thereby promoting the export of Kazakhstani goods.
Kuanysh Mukazhanov, Deputy Chairman of the Board of KazakhExport, stated, "The signed agreements will enable Kazakhstani exporters to boost their sales without assuming additional risks. Importantly, foreign buyers will have the opportunity to obtain Kazakhstani products on credit with favorable terms, while exporters will receive immediate payment upon shipment. We expect ForteBank to further enhance its collaboration with us by participating in our other programs, such as international factoring, loan insurance, foreign exchange transaction insurance, and bank guarantee insurance."
Aliya Eszhan, Managing Director of ForteBank, emphasized the significance of this cooperation, noting, "The partnership between ForteBank and KazakhExport presents additional opportunities for our clients to develop domestic export-oriented production and their overall businesses. We encourage our clients to actively leverage the tools provided by our bank and the national export insurance company."
It's worth noting that the signed agreements are expected to boost demand for Kazakhstani products among foreign buyers by offering them favorable trade finance options. The financing is provided through second-tier banks in Kazakhstan, utilizing the letter of credit payment method based on agreed-upon terms.
Furthermore, to facilitate longer-term trade financing for the acquisition of high-tech goods and services within Kazakhstan, a program is in place to subsidize remuneration for foreign partners. This program aims to stimulate the growth of Kazakhstan's manufacturing and industrial sectors while contributing to the expansion of sales markets. Essentially, Kazakhstani manufacturers can seek assistance from KazakhExport to sell their products or services through foreign buyer financing provided by Kazakh financial institutions at low interest rates.
For Kazakhstani banks, this Financing Program, insured and funded by KazakhExport, offers the opportunity to insure up to 100% of the risks associated with non-fulfillment of obligations by issuing banks. This widens their product portfolio and customer base.
It's worth recalling that since 2016, KazakhExport has supported over 200 exporters with a total value exceeding 870 billion tenge. These supported enterprises operate across vital sectors of the economy, including food and chemical industries, mechanical engineering, agriculture, metallurgy, and more. Export destinations encompass countries such as Uzbekistan, Russia, Afghanistan, Kyrgyzstan, Tajikistan, China, Turkmenistan, Azerbaijan, Lithuania, Ukraine, Belarus, Italy, Turkey, and many others.
ForteBank, as one of the largest banks in Kazakhstan, maintains an extensive branch network throughout the country.
KazakhExport EIC JSC, a subsidiary of Baiterek Holding, plays a pivotal role in supporting domestic non-resource exporters through various financial instruments.
Follow this link to learn more about the program: https://kazakhexport.kz/en/page/eksportnoe-torgovoe-finansirovanie