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EBRD supports trade finance in Kazakhstan
USD 10 million to KazInvestBank supports local businesses
The EBRD is providing to KazInvestBank (KIB), a fast developing bank in
Kazakhstan, $10 million under its Trade Facilitation Programme (TFP) to be
used for guarantees and cash disbursements.
Established in 1999, the TFP supports trade to, from and within the EBRD’s 29
countries of operations. The programme assists participating banks such as KIB
in building track records with their correspondent confirming banks, reducing
cash collateral requirements and freeing clients' working capital by providing
guarantees to the confirming banks in respect of the payment of various trade
finance instruments issued by local banks.
André Küüsvek, EBRD Director for Kazakhstan, said this important loan will
promote trade development in Kazakhstan, and especially in the regions beyond
major cities. It will also introduce greater competition in the sector by
strengthening an additional player in a market, which will ultimately benefit
local businesses.
KazInvestBank started its commercial banking operations in 2004. As of end
2006, the bank’s total assets reached $202 million and total equity amounted
to $38 million.
The EBRD is one of the largest financial investors in Kazakhstan having
committed more than $1.8 billion in 50 projects to-date. More than 70 per cent
of the Bank’s portfolio in the country is in the private sector.
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