The Kazakh subsidiary of Russia’s largest credit institution Sberbank is receiving a US$50mn development bank loan to facilitate foreign trade.
The European Bank for Reconstruction and Development (EBRD) will provide Sberbank Kazakhstan with the loan.
The funding will allow Sberbank to provide financing facilities with three to five year tenors for Kazakh corporates and retailers.
The loan comes at a time when the Kazakh real economy is struggling to secure financing following on from the country’s banking crisis.
Rudolf Putz, head of the EBRD’s trade facilitation programme, notes that the loan means that Sberbank will be the development bank’s first port of call in Kazakhstan: “With the signing of this agreement, Sberbank Kazakhstan becomes our new partner bank in the country.”
“Through this transaction, the EBRD is addressing the unmet demand for trade finance in Kazakhstan, supporting further development of trade in the region in the current market conditions,” Putz adds.
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