KAZAKHSTAN TRADE FACILITATION PROGRAMME

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 4409

Status Complete

Location

Kazakhstan

Business Sector

Financial Institutions

Notice Type

Private

Sub-projects

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 4409

Status Complete

Location

Kazakhstan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

30 Sep 1997

Disclosure date

15 Aug 1997

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A US$ 40 million programme in Kazakhstan involving the issue by the EBRD of guarantees to support the obligations of issuing banks in Kazakhstan under irrevocable letters of credit and guarantees. The programme will be for two years and will cover both import and export transactions.

To broaden access to the EBRD's trade facilitation product to cover another country in the Bank's region of operations. The overall objective of trade facilitation programmes is to support issuing banks in their strategy of becoming acceptable trade finance partners to international banks. A secondary objective is to promote general institution building and sound banking.

Transition Impact

The programme will promote the use of trade finance instruments that should reduce the cost of trade finance and reduce risks run by importers and exporters in Kazakhstan. The programme will increase the number of local banks able to deliver trade finance business competitively as well as the number of foreign banks prepared to grant uncollateralised credit lines. International trade will be promoted by increasing the availability of imports and facilitating the funding of exports.

The Client

Client banks or issuing banks joining the programme will be located in Kazakhstan and will have to demonstrate the need for a trade finance line and prove a satisfactory level of creditworthiness. EBRD has recently agreed to add a fourth bank to the US$ 40m Kazakhstan Trade Facilitation Programme approved in 1997. A dedicated credit line in favour of Bank TuranAlem was approved in October 1998 to add to the three credit limits already approved for Halyk Savings Bank, Almaty Merchant Bank and Tsesna Bank. These banks represent a diverse group of institutions and are responsible for conducting a significant portion of Kazakhstan's foreign trade business.

EBRD Finance

The programme will provide guarantees by the EBRD covering the reimbursement obligations of issuing banks under letters of credit issued by them in respect of imports and advance payments for exports. Guarantees will cover obligations up to a maximum of two years for imports and two-and-a-half years for advance payments for exports. Issuing banks will be granted lines to a level consistent with their needs and credit quality.

Project Cost

US$ 40 million (ECU 32.8 million) for the programme.

Environmental Impact

The project was classified as C/0, and therefore does not require an environmental audit or analysis. In view of the short-term and rapid turnover of trade finance operations, environmental procedures will focus on the nature of goods being traded. Banks participating in the programme will ensure that no goods are financed in any transaction which is on the EBRD's Environmental Exclusion List.

Technical Cooperation

There are unlikely to be technical cooperation needs arising directly from this programme, although the Bank does not exclude the possibility of arranging technical cooperation in the future for banks to be incorporated.

Company Contact

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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