Foreign partners were told about support of Kazakhstan’s exporters during the pandemic
On August 19, 2021, an international webinar Role of Credit and Political Risk Insurance in Resource Mobilization in the Post-COVID-19 Era took place. The event was arranged by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Participants of the online event included experts from leading financial institutions in the field of trade, lending, investment and insurance - Oussama Kaissi, ICIEC General Director; Stephen Garjulo, Head of Global Markets Department of ICBC Standard Bank plc; Yerdan Bekkhozhin, Deputy Chairman of the Management Board of EIC KazakhExport JSC; Amin Lamamsi, Deputy Director for International Cross-Border Activities and Financial Institutions, Bank of Africa.
Participants of panel sessions discussed vital risk mitigation tools during the COVID-19 pandemic and showcased insurance of export credits and political risks, considered a possibility of using new mechanisms to restore business activity.
During the event, Yerdan Bekkhozhin, Deputy Chairman of the Management Board of IEC KazakhExport JSC, stated that in conditions of the coronavirus pandemic, KazakhExport provides reliable support to Kazakhstan’s exporters in manufacturing industry. Timely and high-quality transition of employees to teleworking was ensured, as a result of which there were no disruptions in business processes of the company, transition to online field contributed to a decreased paper turnover.
- In conditions of the pandemic, support is provided to domestic producers in priority sectors of the economy - mechanical engineering, agro-industrial complex, metallurgy, chemical, light industry and services. Last year, we provided insurance support to exporting enterprises for an amount of over $ 315 million,’ he specified.
According to the speaker, the government is a main pillar of business in this difficult period. Strong capitalization of KazakhExport and the state guarantee increase insurance capacity to support domestic exporters and provide security for the company to discharge its insurance obligations, which undoubtedly also increases a credit of trust for foreign partners in insurance coverage from KazakhExport.
‘This year, our goal is to receive a government guarantee for the amount of over $ 235 million for a period of 10 years,’ Yerdan Bekkhozhin said.
He also indicated that KazakhExport is continuously expanding areas of international cooperation. ‘We are in regular interaction with international organizations. Strategic partner of our company is ICIEC - Islamic Corporation for Insurance of Investments and Export Credit. KazakhExport and ICIEC are expanding their cooperation under an upcoming quota reinsurance agreement. The fact that ICIEC is willing to do business with us is proof that our relationship is moving in the right direction. Islamic Corporation for Investment and Export Credit Insurance is renowned for its strong financial position and extensive experience. Cooperation with ICIEC will help us to increase a scope of new insurance obligations,’ the speaker summed up.
During the discussion the parties also demonstrated some of innovative structures and initiatives adopted by the ICIEC and partners to mobilize resources and support participating countries during the pandemic, and once again emphasized a role of partnership between different participants of the development process and private sector.