The EBRD is providing to KazInvestBank (KIB), a fast developing bank in Kazakhstan, US$10mn under its Trade Facilitation Programme (TFP) to be used for guarantees and cash disbursements.

Established in 1999, the TFP supports trade to, from and within the EBRD’s 29 countries of operations. The programme assists participating banks such as KIB in building track records with their correspondent confirming banks, reducing cash collateral requirements and freeing clients’ working capital by providing guarantees to the confirming banks in respect of the payment of various trade finance instruments issued by local banks.

Andr Ksvek, EBRD director for Kazakhstan, says this important loan will promote trade development in Kazakhstan, and especially in the regions beyond major cities. It will also introduce greater competition in the sector by strengthening an additional player in a market, which will ultimately benefit local businesses.

KazInvestBank started its commercial banking operations in 2004. As of end 2006, the bank’s total assets reached US$202mn and total equity amounted to US$38mn.

The EBRD is one of the largest financial investors in Kazakhstan having committed more than US$1.8bn in 50 projects to date. More than 70% of the bank’s portfolio in the country is in the private sector.