KazakhExport extends record financing of 324.8 billion tenge to Kazakhstani exporters
In 2023, Kazakhstani exporters received an unprecedented level of support, amounting to 324.8 billion tenge, from KazakhExport Export Insurance Company, a subsidiary of the Baiterek National Management Holding. This record figure significantly surpassed the amounts provided in 2022 and 2021, which stood at 259.1 billion tenge and 204.7 billion tenge, respectively. The volume of pre-export and export trade financing extended in 2023 totaled 19.3 billion tenge.
Aslan Kaligazin, Chairman of the Board of KazakhExport EIC, highlighted that 66% of the supported projects in 2023 were from SMEs, spanning various sectors such as food and chemical industries, mechanical engineering, agriculture, and metallurgy.
"In 2023, KazakhExport provided support to 89 exporters, with 27 new collaborations initiated. This partnership facilitated trade relations with 466 foreign buyers, without utilizing any budgetary funds. Under KazakhExport's insurance coverage, additional 246 billion tenge were raised from financial institutions to bolster Kazakh exports," stated Aslan Kaligazin.
Export destinations encompassed countries such as Uzbekistan, Kyrgyzstan, Russia, Tajikistan, China, Afghanistan, UAE, Poland, Turkmenistan, Azerbaijan, Lithuania, Belarus, Turkey, Mongolia, Estonia, among others.
The main industry sectors served included the food industry (34.6%), metallurgy (27.7%), chemical industry (25.2%), electronics products (4%), mechanical engineering (2.6%), light industry (2.5%), agricultural products (2.2%), and export of services and construction materials (1.2% combined).
"We must diversify the economy and enhance the export share. Over the past eight years, KazakhExport has increased support for non-resource exports by 16 times. We are committed to advancing export-oriented investment projects in Kazakhstan to facilitate domestic companies in entering new markets and boosting their revenue," emphasized the head of KazakhExport.
Since 2016, KazakhExport EIC has funded exporters with 1,170.1 billion tenge.
Earlier, on January 23, 2024, President Kassym-Jomart Tokayev signed the Law "On amendments to certain legislative acts of the Republic of Kazakhstan on export credit agency and promotion of the export of non-commodity goods and services."
This law, developed on the President's directives, entails the establishment of an export credit agency based on KazakhExport Export Insurance Company. The company aims to promote non-resource exports and serve as an export credit agency. As part of its mandate, KazakhExport assumes risks to mitigate possible losses for domestic non-resource exporters or their foreign importers, thus improving the financial conditions for export transactions.
For reference:
The KazakhExport Export Insurance Company endeavors to foster the expansion of non-resource exports and acts as an export credit agency.
The company’s mission is to nurture the growth of Kazakhstan's non-resource exports.
KazakhExport offers a comprehensive approach to supporting exporters, extending its services to any domestic enterprise producing non-commodity goods aiming to venture into international markets and safeguard their business from risks.
KazakhExport assumes the risks associated with potential losses for domestic non-resource exporters or their foreign importers, thereby enhancing the financial conditions for interaction between exporters and importers during export transactions.
