ECA Sets Additional Limits for Central Asian Banks
JSC "Export Credit Agency of Kazakhstan" (ECA) has established cooperation with banks in Uzbekistan and Kyrgyzstan by approving new limits for letter of credit insurance.
These measures are aimed at strengthening trade finance and diversifying Kazakhstan's export flows to Central Asian countries.
In particular, a limit has been approved for OJSC "O!Bank" (Kyrgyzstan), which will support trade finance transactions and the issuance of letters of credit in favor of Kazakhstani exporters supplying products from the manufacturing sector. This includes shipments of soft drinks and machinery sector goods, such as automobiles and spare parts.
Additionally, an insurance line has been approved for JSC "Asakabank" (Uzbekistan) to support the export of Kazakhstani vegetable oil.
Today, ECA has established strong partnerships with leading financial institutions in the region. These include CJSCB "Orient Finance", JSCB Uzpromstroybank, JSCB "Tenge Bank", JSCB "Kapitalbank", SSB RT "Amonatbank", OJSC "Orienbank", and others. The total financing limit established under these partnerships exceeds USD 170 million.
ECA views the development of trade finance as a strategic tool to expand Kazakhstan’s export geography and support small and medium-sized enterprises. This was stated by Madina Erzhanova, Deputy Chairwoman of the ECA Management Board.
"Strengthening the position of Kazakhstani exporters in neighboring markets opens new horizons for business, contributes to an increase in foreign currency inflows, and enhances the country’s investment appeal. Particular attention is given to deepening cooperation with financial institutions in Central Asian countries, where there is strong demand for products from Kazakhstan's manufacturing sector. A unique feature of ECA’s trade finance is the ability to provide funding to foreign banks and importers on preferential terms. This enables them to purchase Kazakhstani goods using letters of credit, while minimizing risks for all parties involved," added Ms. Erzhanova.
It is worth noting that in 2024, the volume of pre-export and export trade financing provided by ECA increased to 30 billion tenge, which is 56.4% higher than in 2023.
