Exim Bank has $10 mn for Kazakhstan

India’s Export-Import Bank has extended a $10 million line of credit to Kazakhstan’s Bank Turanalem.

The line of credit also affords risk-free non-recourse export financing to Indian exporters to Kazakhsthan, an Exim Bank statement said here today. Under the LOC, importers from Kazakhstan are required to make an advance payment of 10 per cent of the contract value to Indian exporters. The balance 90 per cent of the contract value will be reimbursed by Exim Bank to the Indian exporters, upfront, upon the shipment of goods, it said. The credit period available to the importers through the Bank Turamalem is up to five years, the statement said.

An agreement to this effect was recently signed in the capital of Kazakhstan, Almaty, by Exim Bank General Manager P.R. Dalal and Bank Turamalem Deputy Chairman Saduakas H. Mameshtegi, in the presence of India’s Ambassador to Kazakhstan.

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Noting that India’s exports — mainly tea, leather goods, machinery and instruments, drugs and pharmaceuticals — to Kazakhstan amounted to $45.73 million in 2002, Exim Bank said: ‘‘The line of credit is aimed at giving a further filip to exports’’.

Bank Turamalem is the second largest private sector bank in Kazakhstan, with assets of over $1,494 million.