Baku, Azerbaijan, June 12
By Ali Mustafayev – Trend:
KazakhExport JSC and VTB Bank JSC (Kazakhstan) signed an agreement on placement of conditional bank deposits, the press service of KazakhExport said in a message.
“The cooperation of the two institutions opens up new opportunities for Kazakh exporters. KazakhExport will be able to place contingent deposits with VTB for the subsequent provision of preferential borrowed capital to the exporter,” the message said.
The pre-export financing will allow the exporters to make timely purchases of raw materials, replenish current assets, reduce the cash gap and, increase export volumes.
"The partnership with VTB has great prospects for increasing the volume of non-primary exports. Since early 2017, the company has provided support to more than 50 exporters through second-tier banks," said Ruslan Iskakov, Chairman of the Board of KazakhExport JSC.
The agreement is also expected to expand the range of financial instruments offered to Kazakh export-oriented enterprises.
"The bank has an opportunity to support domestic exporters. Now they can replenish their working capital on the most favorable terms, and in addition to this, they will insure risks when conducting export transactions," said Dmitry Zabello, Chairman of the Board of VTB Bank.
Pre-export financing is one of the main tools of KazakhExport to support non-primary exports. The service is being provided to Kazakh exporters through Kazakhstan’s second-tier banks to replenish working capital and fulfill obligations under an export contract.
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