KazakhExport redefined as Export Credit Agency of Kazakhstan
KazakhExport Export Insurance Company has been redefined as the Export Credit Agency of Kazakhstan JSC (ECA). It was done in accordance with Government Decree #261 dated April 8, 2024, titled "On KazakhExport Export Insurance Company and Amendments to Some Decisions of the Government of the Republic of Kazakhstan."
The ECA will serve as a pivotal national institution for fostering and advancing non-resource exports. This elevation of KazakhExport to ECA status underscores the government's commitment to bolstering support for non-resource exports. In addition to its existing services such as insurance, reinsurance, pre-export and export trade finance, the ECA will introduce export operations guaranteeing and interest rate subsidization on trade finance.
The introduction of export operations guaranteeing is poised to enable Kazakhstani exporters to engage in international tenders and broaden the global footprint of Kazakhstani goods and services in markets with significant export potential.
Moreover, this new approach will encourage importers to offer advance payments by providing them with a guarantee from the Export Credit Agency of Kazakhstan to secure their payment responsibilities in export transactions. Therefore, exporters will not need to contact banks and offer collateral.
Through subsidizing trade finance rates, the ECA will help local producers of high-tech goods and services sell their products or services. This assistance enables foreign buyers to secure financing through Kazakhstani financial institutions.
These initiatives are set to propel Kazakhstan's exports to unprecedented heights by creating favorable conditions for purchasers of Kazakhstani goods and services and ensuring the competitiveness of domestic trade finance rates in key export markets across Europe and Asia.
For Kazakhstani financial institutions, this presents an opportunity to mitigate risks associated with the non-fulfillment of obligations by issuing banks while expanding their product portfolio and client base.
It is noteworthy that the law on the export credit agency and the promotion of non-commodity exports was crafted at the behest of the President of Kazakhstan.
