Export and trade financing together with “EIC KazakhExport” JSC
The Instrument “Export and Trade Financing” (hereinafter referred to as the “ETF”) from “EIC KazakhExport” JSC is aimed at stimulating the demand for Kazakh products from foreign buyers. ETF is provided to foreign companies (importers) for the purchase of Kazakhstani goods / services through the Subsidiary VTB Bank JSC (Kazakhstan) within the framework of letter of credit payment method. The following parties are involved in ETF implementation:
- Client – exporter of goods / services under the export contract,
- Subsidiary VTB Bank JSC (Kazakhstan) – Confirming Bank / Creditor Bank on the interbank transaction,
- Importer's Bank – issuing bank that issued the letter of credit / borrower within the framework of post financing on the interbank transaction,
- mporter – recipient of goods / services and concessional financing from the issuing bank.
While retaining insurance functions, the “EIC KazakhExport” JSC has included insurance coverage in the ETF (risk of failure to pay an interbank loan by the Importer's Bank).
The cost of financing for the Importer’s Bank is as follows: The rate of raising funds from “EIC KazakhExport” + margin of Subsidiary VTB Bank JSC (Kazakhstan) + insurance premium.
For details on the ETF conditions click the link: Export and trade financing from “EIC KazakhExport” JSC