Kazakhstan's Development Bank eyes to implement transactions in Russian rubles
BAKU, Azerbaijan, Jan. 12
By Nargiz Sadikhova – Trend:
The Development Bank of Kazakhstan (DBK) JSC plans to develop the implementation of transactions in Russian rubles and also finance Kazakh borrowers in this currency, a source in DBK told Trend.
In the early December 2020, the Eurasian Development Bank (EDB) and DBK signed a loan agreement envisioning opening of a credit line for DBK in the amount of 5.7 billion Russian rubles by EDB to for a period of 7 years.
According to the source, the above funds can be used for projects that meet not only the sectoral priorities of the Bank, but also the environmental policy of EDB. Thus, this is a further step towards the development in Kazakhstan of financing projects that meet environmental protection and other requirements (the so-called ESG financing).
"The bank's loan portfolio consists of loans issued in tenge (53 percent) and foreign currency, mainly in US dollars (46 percent). Since 2013, the volume of lending in tenge has increased by 26 percent. Such changes have positively impacted the financial stability of the bank’s borrowers," noted the source.
Besides, according to DBK, the issuance of loans within the ruble credit line will partially affect the diversification of the bank's loan portfolio.
"We plan to develop the implementation of transactions in Russian rubles and finance our borrowers in this currency. Loans in rubles may be of interest to companies exporting their products to Russia. Thus, we are diversifying our borrowing portfolio in every possible way, comparing with other currencies," stressed the source.
The source also noted that under the agreement with EDB, DBK has no obligations on specific projects.
"Loans in rubles will be offered to potential clients, projects under consideration by DBK, as well as previously financed projects (within the framework of the line, it is possible to refinance existing loans), but only against loans issued by DBK no later than 36 months before the date of opening this line", added the source.