200 billion tenge to support exports: Kazakhstan’s Export Credit Agency received a state guarantee
JSC “Export Credit Agency of Kazakhstan,” a subsidiary of the Baiterek Holding, has received a state guarantee to support exports in the amount of 200 billion tenge with a validity period of 10 years. This measure is aimed at significantly increasing the volume of insurance liabilities undertaken by the Agency, thereby expanding financial support for domestic enterprises operating in the non-resource sector of the economy.
The provision of a state guarantee equates the Agency’s insurance coverage to highly liquid collateral. This creates additional incentives for second-tier banks to actively finance Kazakhstani exporters and makes it possible to reduce the cost of financial services through the attraction of international capital and cooperation with foreign export credit agencies on more favorable terms.
The state guarantee mechanism does not involve direct budget expenditures, as its amount represents a contingent liability of the Government of the Republic of Kazakhstan to cover part of uninsured insurance payouts. At the same time, the availability of the guarantee contributes to expanding the geography of supplies of Kazakhstani goods and services and opens access for exporters to long-term financing from international institutions and large commercial banks under the Agency’s insurance coverage. The use of these instruments enables domestic companies to effectively minimize financial risks under export contracts and apply modern trade finance solutions when working with foreign counterparties.
