Government of Kazakhstan Provided EIC KazakhExport JSC with 100.2 Billion KZT State Guarantee
The Government of the Republic of Kazakhstan by its decision № 657 dated September 22, 2021, decided to provide EIC KazakhExport JSC with a state guarantee for export support in the amount of 100.2 billion KZT with a validity period of 10 years.
On September 30, the Ministry of Finance of the Republic of Kazakhstan and EIC KazakhExport JSC entered into Guarantee Agreement № 5ГГД024, which is registered with the Treasury Committee of the Ministry of Finance of the Republic of Kazakhstan.
Limit on provision of the state guarantee of the Republic of Kazakhstan to support exports for 2021 in the amount of 100.2 billion KZT with a validity period of 10 years is provided for in the Law of the Republic of Kazakhstan ‘Amendments to the Law of the Republic of Kazakhstan ‘2021-2023 Republican Budget’ dated May 24, 2021 № 44-VII.
The state guarantee is necessary to increase insurance capacity of EIC KazakhExport JSC in order to provide support to domestic exporters of the manufacturing sector and ensure discharge of Company's obligations on insurance payments under the signed contracts.
‘Compliance with the level of the insurance portfolio within the existing capacity will preserve a high degree of reliability of the Company and, accordingly, confidence in it on the part of second-tier banks, international financial institutions and foreign export credit agencies. Domestic exporters of non-primary goods and services will be able to raise long-term financing from international financial institutions and large commercial banks under insurance coverage from EIC KazakhExport JSC, rely on trade financing of their foreign counterparts, mitigate financial risks under their export contracts,’ says Ruslan Iskakov, Chairman of Management Board of EIC KazakhExport JSC.
Since the beginning of this year, volume of insurance support for Kazakhstan’s exporters of the manufacturing sector through the instruments of EIC KazakhExport JSC has exceeded 100 billion KZT.
Export Insurance Company KazakhExport JSC (a part of NMH Baiterek JSC) is a subordinate organization of the Ministry of Trade and Integration of the Republic of Kazakhstan to promote export of non-primary goods and services. Mission of Export Insurance Company KazakhExport JSC is to support growth of exports of non-primary goods, works, services in priority sectors of the economy and to form practice of financial, insurance and non-financial support of Kazakhstan’s enterprises.
Press service of EIC KazakhExport JSC