Kazkommertsbank has signed an agreement with Export-Import Bank of Russia (EximBank) to co-operate in financing and guaranteeing the supply of Russian capital equipment to Kazakhstan.

The largest private bank in Kazakhstan says the agreement will benefit Kazakh buyers using letter of credit (L/C) transactions.

Benefits

Kazkommertsbank reckons EximBank's state-owned status and its focus on supporting and stimulating Russian capital goods exports means its customers will benefit in several ways.

The bank says its clients are likely to benefit from more favourable financing terms for their imports from Russia and for projects realised in Kazakhstan with the involvement of Russian companies.

Trade finance

Kazkommertsbank says it is seeing increasing demand for financing from Kazakh entrepreneurs working with Russian partners.

The Kazakh bank also says it expects its clients will benefit under the new arrangement from easier or more favourable trade finance arrangements with Russian counterparts, including L/C confirmation and letter of guarantee issuance.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.