KazakhExport secures state guarantee of 129.2 billion tenge to bolster export support
KazakhExport, a subsidiary of Baiterek Holding and a leading export insurance company, has been granted a state guarantee totaling 129.2 billion tenge for a duration of 10 years.
This guarantee significantly enhances KazakhExport's capacity to support domestic exporters by enabling an increase in insurance obligations acceptance, currently exceeding 650 billion tenge.
The assurance of the state guarantee not only facilitates the expansion of KazakhExport's insurance coverage but also serves as highly liquid collateral, motivating second-tier banks to finance Kazakhstani exporters. Additionally, it enables KazakhExport to forge partnerships with international financial institutions and foreign export credit agencies on more favorable terms, thereby reducing the cost of financial services.
It's important to note that the state guarantee does not involve direct expenditure of budgetary funds; rather, it represents a conditional obligation of the Government of Kazakhstan to cover a portion of uninsured insurance payments, subtracting KazakhExport's own capital. This mechanism not only attracts international capital for Kazakhstan's export transactions but also broadens the scope of domestic exports.
– This enables domestic exporters of non-commodity goods and services to get long-term financing from international financial institutions and major commercial banks, leveraging KazakhExport's insurance coverage. They can utilize trade finance options for their trading partners, mitigate financial risks associated with export contracts, and use other support tools offered by KazakhExport, – stated Rauan Zhaksybaev, Deputy Chairman of the Board of KazakhExport
