NUR-SULTAN – Baiterek National Holding Chair Aidar Arifkhanov and Euler Hermes head Ingo Junker signed a $1.12 billion export insurance deal June 3 in Berlin, Germany, Baiterek’s press service reports.
This agreement allows Germany to have insurance coverage for its export operation in Kazakhstan for up to $1,119,050,000. The agreement is meant to attract German investment to Kazakhstan’s economy, as well as to provide new avenues for Kazakh companies and banks to cooperate with Germany and European Union countries.
Euler Hermes is an international export insurance agency, and Baiterek Holding was recognised as Kazakhstan’s official Euler Hermes cooperation operator. The confirmation from the German side was received June 14.
Export credit insurance (ECI) protects exporters against the risk of non-payment by a foreign buyer, export.gov states. ECI significantly reduces the payment risks associated with doing business internationally by giving the exporter conditional assurance that payment will be made if the foreign buyer is unable to pay.
As the REGNUM news agency reports, on May 23, German Ambassador to Kazakhstan Tilo Klinner said that German companies plan to invest in power generation, housing and public utilities development and tourism in Kazakhstan.
Baiterek National Holding is a key institution in Kazakhstan tasked with ensuring that the country’s economy develops sustainably. It supports financial diversification, innovation, export development and labour productivity. The holding includes the Development Bank of Kazakhstan, the Investment Fund of Kazakhstan, Zhilstroysberbank of Kazakhstan, IO Kazakhstan Mortgage Company, ESC KazakhExport, FRP Damu, QazTech Ventures, the Housing Construction Guarantee Fund, Kazyna Capital Management, Baiterek Development and the Kazakhstan Project Preparation Fund.
Euler Hermes is the largest company in the world that specialises in export credit insurance. Most of the shares belong to the French insurer Allianz France, which, in turn, belongs to the largest German insurer, Allianz SE. Engaged in credit insurance and protection against financial risks for more than 100 years, Euler Hermes has developed a full range of services for managing companies’ receivables.