EDB opens a trade finance loan facility for Kazakhstan's Tsesnabank
Almaty, 21 January 2013. Eurasian Development Bank (EDB) signed today an agreement to provide Tsesnabank with a five-year renewable loan facility of US $4 million for the purposes of trade finance. The loan will be used to finance foreign trade transactions of the bank’s clients in the EDB member states. Financing may be provided in the roubles, euro, US dollars or the currencies of the CIS countries.
The agreement aims to expand Tsesnabank’s external sources of finance for its clients who are engaged in foreign trade. In addition, it will help promote mutual trade and integration between the EDB member states. A total of 80% of the loan will be used to finance export and import transactions between the EDB member states.
«Financing export and import transactions results in higher volumes of mutual trade and in the development of corporate ties and partnership between companies from the Bank’s member states,» says Dmitry Krasilnikov, Managing Director for Corporate Finance. «For this reason we view trade finance as an effective instrument of integration.»
The project is being implemented in the framework of the EDB Programme for the Development of Trade Finance Instruments and the Expansion of Mutual Trade between the EDB Member States adopted in the summer of 2010.
Additional Information
Tsesnabank is a full-service commercial bank established in 1992 in Tselinograd (Astana). Its main shareholder is the Tsesna Investment Corporation holding 60% of stock. Tsesnabank is one of the top ten largest banks in Kazakhstan. It has 21 branches and over one hundred outlets throughout Kazakhstan. Read more at https://www.tsb.kz
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org