Export trade financing
One of the main objectives of the Program is to stimulate demand for domestic products from foreign buyers through the provision of trade financing on favourable terms. Financing is provided indirectly through the second-tier banks of Kazakhstan in the framework of the letter of credit payment method.
- Exporter and importer conclude an export contract
- Importer submits an application to a bank for issuance of a letter of credit in the favor of the exporter’s bank
- Importer’s bank issues a letter of credit
- Exporter’s bank and «KazakhExport» conclude an insurance agreement and agreement for placing a conditional bank deposit
- Exporter’s bank confirms the letter of credit
- The exporter delivers goods and provides documents to its bank
- «KazakhExport» places a conditional deposit in the exporter’s bank, which transfers the money to the exporter
- The importer repays the loan to its bank which in turn repays the inter-bank loan to the exporter’s bank
«Lokomotiv kurastyru zauyty» JCS
Through «KazakhExport’s» support, «Lokomotiv Kurastyru Zauyty» JSC established an export of locomotives to Tajikistan.
«KazakhExport» provided trade financing to importer’s bank and insurance of risks of default for commercial and political reasons.