Government of the Republic of Kazakhstan has provided a government guarantee in the amount of 102 billion tenge for 10 years on obligations of "KazakhExport"
By resolution of the Government of the Republic of Kazakhstan No. 966 dated December 24, 2019, it was decided to provide a government guarantee for export support in the amount of 102 billion tenge with a validity period of 10 years to Export Insurance Company "KazakhExport" Joint Stock Company. On December 27, the Ministry of Finance of the Republic of Kazakhstan and EIC "KazakhExport" JSC signed a Guarantee Agreement No. 5ГГД0211, registered with Treasury Committee of the Ministry of Finance of the Republic of Kazakhstan.
Government guarantee is necessary to increase the insurance capacity of "KazakhExport" in order to support domestic exporters and ensure the fulfillment of the company's obligations on insurance payouts under the concluded agreements.
"Banks do not bear risks when financing export transactions and enterprises that supply their products abroad using insurance coverage. Such obligations are covered by a government guarantee, and this is a worldwide practice. Our country is no exception. This allows us to significantly increase the volume of support for export companies", - said Ruslan Iskakov, Chairman of the Board of "KazakhExport".
For reference: In October 2018, Nursultan Nazarbayev, the first President-Elbasy instructed the Government to allocate 500 billion tenge to support the manufacturing industry and non-resource export in the next three years. As a result, the volume of non-resource exports should grow by 1.5 times until 2022, and the number of export enterprises will increase from 300 to 450.
Mission of Export Insurance Company "KazakhExport" JSC (a member company of NMH Baiterek JSC) is to support the export growth of non-resource goods, services in priority sectors of economy and to form financial practice of financial insurance and non-financial support of Kazakh enterprises.