Export trade financing
The Export Trade Financing Instrument (hereinafter – the ETF) from ESK KazakhExport JSC is aimed at stimulating demand for Kazakhstan products from foreign buyers. The ETF is provided to foreign companies (importers) for purchase of Kazakhstani goods/services through Subsidiary VTB Bank JSC (Kazakhstan) under the letter of credit payment method.
The following parties participate in the ETF implementation:
- The client is an exporter of goods/services under an export contract,
- Subsidiary VTB Bank JSC (Kazakhstan) – Confirming Bank/Creditor Bank on interbank transaction,
- Importer's Bank - The issuing bank that issued the letter of credit / borrower as part of post-financing in an interbank transaction,
- Importer – recipient of goods/services and preferential financing from the issuing bank.
ESK KazakhExport JSC, leaving the functions of insurance included in the ETF insurance coverage (risk of failure to repay an interbank loan by the Importer's Bank).
The cost of financing for the Importer's Bank is as follows: Rate of raising funds from ESK KazakhExport JSC + margin of Subsidiary VTB Bank JSC (Kazakhstan) + insurance premium for insurance coverage.
For more information about the ETF conditions, please follow the link: Export trade financing from ESK KazakhExport JSC