Kazakh bank TuranAlem transmitted to the cooperation on a new financial instrument with Azerbaijani banks with participation of the Kazakh State Insurance Corp. In case of underwriting of risks by the Corp., TuranAlem can open $2m credit line, Trend reports referring to Aida Sultanova, the head of the Baku Office of the bank.
If any Azerbaijani company decides to import goods from Kazakhstan, the Kazakh Corp. can cover around 80% of import risks. If any Azerbaijani bank receives $100,000 credit line, the contract of the local importer can exceed the sum by 5 times, Sultanova stressed. Similar guarantees will allow export growth from Kazakhstan and promote improvement of conditions for purchasers.
The first deal was conclude through Technikabank with participation of the Kazakh State Insurance Corp. The sum of the contract comprised $420,000, Trend reports quoting Samir Husseynov, the chairman of the Board of Technikabank.
As to credit line on trade financing, TuranAlem considers possibility of opening of loan for Bank of Baku, Sultanova noted. The amount of the credit line will depend on the financial state of the Azerbaijani bank, as well as the decision of the credit committee. The applications for loan were also submitted by Atabank.
The Kazakh bank intends to increase credit line for Respublika bank with 12-month period of validity.
TuranAlem have opened credit lines for Azerdemiryolbank, Respublika, Unibank, Technikabank so far. The total credit portfolio of the Kazakh bank on financing of trade transactions in Azerbaijan exceeds $1.5m.