Kazakhstan lender Bank CenterCredit has partnered with the International Finance Corporation (IFC) to expand local firms’ access to trade finance products, with a particular focus on SMEs.
IFC announced today that Almaty-headquartered Bank CenterCredit has joined its Global Trade Finance Program as both an issuing and confirming bank, meaning it can provide instruments such as letters of credit backed by IFC guarantees.
It said the partnership will give Kazakhstan-based companies more reliable access to trade finance, particularly smaller firms that often face barriers when attempting to secure financial support.
“Smaller firms are frequently turned away because banks lack the risk capacity or correspondent relationships to support their cross-border transactions,” said the IFC, which acts as a development finance institution within the World Bank Group.
“By leveraging IFC’s global network and risk mitigation tools, Bank CenterCredit will be better positioned to support companies from Kazakhstan seeking to grow their international trade activities.”
Bank CenterCredit president Ruslan Vladimirov described the agreement as an “important milestone” that will expand its trade finance offering. The lender is one of the three largest banks in Kazakhstan by assets, offering retail, corporate and SME services.
Zafar Khashimov, country manager for Kazakhstan at the IFC, said: “By expanding access to internationally backed trade finance instruments, this partnership will help businesses from Kazakhstan, especially SMEs, pursue new markets, strengthen supply chains and participate more actively in regional and global trade.”
The Global Trade Finance Program has supported more than US$141bn in trade since its launch in 2005, across more than 100,000 transactions.
For Bank CenterCredit, the agreement with IFC follows the March launch of an €18mn supply chain finance framework in partnership with the European Bank for Reconstruction and Development (EBRD).
Under that programme, the EBRD takes on half the risk of supplier financing provided by the bank. The first facility under the framework was a five-year supplier financing programme for Kazakhstan’s flagship carrier Air Astana.
