Collateral Management Discussed at the ECA Platform
The Export Credit Agency of Kazakhstan (ECA) organized a roundtable dedicated to current issues in collateral management in the context of loan insurance.
The event was attended by representatives of Baiterek National Management Holding JSC and its subsidiaries, as well as leading Kazakhstani banks: Halyk Bank JSC, Altyn Bank JSC, Jusan Bank JSC, Nurbank JSC, and Bereke Bank JSC.
In his welcome speech, Aibol Balkin, Deputy Chairman of the Management Board of the Export Credit Agency of Kazakhstan, noted that ECA’s collateral service provides banks with an additional level of protection. The agency compensates banks for losses directly through insurance or guarantees.
“We rely on deep expertise in assessing types of collateral typical for export operations. ECA’s support allows banks not to require full collateral coverage from exporters. Part of the risk—and therefore the need for collateral—is transferred to ECA, which facilitates access to financing for exporters and enables banks to lend to transactions that would otherwise be too risky or would require excessive collateral. Since the risks are partially covered by ECA, banks can issue larger loans for longer terms,” said Mr. Balkin.
The main goal of the meeting was to improve interaction between ECA, second-tier banks, and quasi-governmental financial institutions in the field of collateral management.
Participants became acquainted with the specifics and internal processes of the collateral departments of lenders, identified "blind spots" in cooperation, and defined ways to optimize them.
The roundtable covered the following topics:
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Collateral eligibility criteria: internal evaluation, liquidity ratios, and collateral value.
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Legal due diligence: legal aspects of securing collateral, including ownership legitimacy, third-party claims, and legal restrictions under the legislation of the Republic of Kazakhstan.
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Collateral monitoring: assessment of collateral monitoring quality, control tools, and reporting mechanisms.
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Interaction with independent appraisers: independent collateral valuation and improving its quality.
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Subrogation and transfer of collateral rights: mechanisms for transferring collateral in case of default.
Anna Lukina, Managing Director of the Export Credit Agency of Kazakhstan, emphasized that cooperation between ECA and second-tier banks is the cornerstone of the national export support system.
“Supporting national exports is our priority, and close cooperation with second-tier banks allows us to significantly expand opportunities for our exporters. Thanks to the work of the collateral service, we not only minimize risks but also create more favorable financing conditions, opening new horizons for the development of domestic business in international markets. Today’s meeting allowed us to exchange experiences, practical cases, and, most importantly, to identify potential issues in cooperation. It is important for us to understand our partners’ position and find mutually beneficial win-win solutions,” added Ms. Lukina.
As a result of the roundtable, proposals were developed to improve cooperation between ECA and lenders on collateral management issues. Directions for further collaboration were also defined to enhance the efficiency of loan insurance and risk management processes.
