Insurance of losses of financial institutions
Insurance of losses of financial institutions is a tool that allows a Financial institution to have insurance coverage against the risk of non-payment by a Kazakhstan enterprise (Exporter) for its obligations under a Financial Services Agreement (opening a letter of credit, issuing a Bank guarantee, urgent currency transaction, granting a credit (loan, financing).
Insurance Procedure
- KazakhExport provides insurance coverage for Financial institution against the risk of default.
- The Financial institution provides the Exporter with a financial service (opening a letter of credit, issuing a Bank guarantee, urgent currency transaction, granting a credit (loan, financing)), the purpose of which includes the development of exports.
- In case of default of the Borrower (Exporter), KazakhExport compensates the losses of the Financial institution.
