It is planned not only to remove trade barriers and increase export financing, but also to take measures to provide broad service support. In this regard, Adil Ismagambetov, the CEO of Development Bank of Kazakhstan JSC (hereinafter - DBK, Subsidiary of Baiterek Holding), held a meeting with exporting enterprises of the East Kazakhstan region in order to inform them about existing support measures. The event was held today as part of a meeting of the Regional Export Council in Ust-Kamenogorsk.
According to official data, this year the Government plans to increase the volume of non-resource exports up to USD 18.6 bln. Taking this fact into account, interest in measures to support from DBK as a national development institution aimed at diversifying the economy through investment in industry and infrastructure is growing significantly. Indeed, today's meeting of the Export Council was attended by a number of entrepreneurs of the East Kazakhstan region. All of them had the opportunity to learn about current support measures from DBK, as well as to conduct individual consultations on issues of interest.
The meeting of the Regional Export Council was fruitful, and there is a great interest in the services of financial institutions on the part of entrepreneurs from East Kazakhstan. I would like to note that today the Development Bank is represented in the region by seven projects at once, these are four investment projects with a project cost of more than KZT 1.3 tln., and three export operations financed as of January 1, 2020 in the amount of KZT 182 bln., said Adil Ismagambetov, the CEO of DBK
So, today, the Bank provides a wide range of financial support tools within the framework of export financing, for example:
- pre-export financing of the exporter, which implies the provision of a revolving credit line for a period of 36 months, with an interest rate of up to 8% per annum in KZT.
- export financing of the importer, or providing credit to the importer for procurement of domestic products, works and services. The minimum amount of funding is the equivalent of USD 3 mln.; the funding period is up to 10 years. The interest rate depends on the funding currency.
- financing of the importer's bank The advantage of this tool is that the Bank works out the entire process of reviewing financing directly with the importer's bank.
- providing a Bank guarantee in favor of both parties, both the exporter and the importer.
It should be noted that the Development Bank has been supporting export finance projects for several years. Over these years, the Bank's team has developed competencies that allow the implementation of the most effective cooperation with partner companies. For example, within the framework of "Nurly Zhol" State Program of Infrastructure Development for 2015-2019, the Bank provided credit funds to 17 major domestic exporters totaling KZT 427 bln. (in the period from 2015 to 01.01.2020), which, in turn, provided exports of Kazakh products in the amount of KZT 553 bln. to more than 15 countries of the near and far abroad for more than 30 types of domestic products.