KazakhExport: The volume of support for domestic producers exporting to Uzbekistan since 2019 amounted to over 255 billion tenge"

The agreements reached by the national export insurance company "KazakhExport" with financial institutions of the Republic of Uzbekistan open access to domestic producers to the local market. This was announced by the chairman of the Board of "KazakhExport" Aslan Kaligazin.

According to him, the demand for Kazakhstani goods is growing. With the insurance support of KazakhExport, Kazakhstani exporters supply cars, batteries, cable products, food, construction materials and much more to the local market.

In total, since 2019, the volume of support for domestic producers exporting to Uzbekistan has amounted to over 255 billion tenge.

"With the insurance support of KazakhExport, Kazakhstani exporters supply cars, batteries, food, construction materials and much more to the local market. Together with domestic banks, we are considering projects to insure letters of credit issued by banks of Uzbekistan, which allows our exporters to receive payment immediately after shipment of goods, and importers – financing for the purchase of Kazakh products," Aslan Kaligazin said.

He also added that for 9 months of 2022, the volume of support amounted to more than 65 billion tenge. The plans are to implement export transactions in the amount of about 20 billion tenge by the end of the year on such products as: insurance of short-term receivables, export lending, direct and trade financing.

KazakhExport partners include Kapitalbank JSCB. According to the head of the trade finance department of the bank, Shahzodbek Usmanov, the companies have been cooperating since 2019 on trade finance, where the exporter receives payment immediately after shipment, and the importer receives a comfortable deferred payment and a preferential financing rate in the Bank of RU under the letter of credit form of payment.

"Working with KazakhExport gives us the opportunity to finance and lend to clients without pressure on the authorized capital. For clients, this is an opportunity to receive acceptable financing rates and work with trusted suppliers in Kazakhstan," Sh. Usmanov.

One of the exporters to Uzbekistan is the Zharkent Starch Plant. With the assistance of KazakhExport, the company has doubled the volume of exports of corn starch and molasses to Uzbekistan. Imports products to Uzbekistan by "Right to Win" LLP.

"KazakhExport represents reliable partners to us, guarantees timely and full shipment of goods. KazakhExport also provides financing on more favorable terms than bank lending," said Mahmud Yuldashev, General Director of Right to Win LLP.

In turn, Sunlight Food Trading LLP imports products of Bayan Sulu JSC and Saule Confectionery Factory LLP from Kazakhstan. The founder of the company, Jaffar Monjazib, stressed that thanks to KazakhExport, the volume of imports has been significantly increased.

"Over the five years of cooperation, we have sold products of these two companies in the amount of 4 million US dollars," said Jaffar Monjazib.

Reference:

JSC "ESC "KazakhExport" is a subsidiary of JSC "NUH "Baiterek" and a subordinate organization of the Ministry of Trade and Integration of the Republic of Kazakhstan. The main task of the company is to support domestic non–commodity exporters through various financial instruments.

In January-August 2022, Kazakh exporters received support in the amount of more than 75 billion tenge, projects in the amount of 31.2 billion tenge were approved, projects in the amount of more than 100 billion tenge are in the works.

Since 2016, KazakhExport JSC has provided support to more than 180 exporters in the amount of 661.2 billion tenge. Trade and pre-export financing was provided to exporters in the amount of 117.4 billion tenge Without attracting financial support from the republican budget, additional funds were raised from financial institutions to support exports in the amount of 391 billion tenge under KazakhExport insurance coverage