Kazakhstan and Uzbekistan strengthen trade with new financial agreements
During a working visit to Tashkent, Development Bank of Kazakhstan (a subsidiary of the Baiterek holding) and KazakhExport Export Insurance Company signed cooperation agreements with four Uzbek banks—Tenge Bank, Uzpromstroybank, OrientFinans Bank, and Kapitalbank—to promote Kazakh exports. This was announced by the financial institution.
As part of the visit, aimed at fulfilling the President's directives to strengthen economic integration in the region, the parties agreed to expand trade and economic cooperation and support Kazakh exports through financing and insurance tools. These mechanisms include interbank loans, letters of credit, guarantees, and insurance coverage for export transactions.
According to the Development Bank of Kazakhstan (DBK), the agreements are designed to support joint infrastructure and industrial projects, reduce risks, and create more favorable financial terms for Uzbek partners.
"Uzbekistan remains Kazakhstan's key strategic trade partner in the region. Signing agreements with leading Uzbek banks establishes a seamless financial infrastructure. This will enable our businesses—from major construction firms to fast-moving consumer goods producers—to enter the Uzbek market with ready-made financial solutions," said Marat Yelibayev, Chairman of the DBK Board.
During meetings with regional representatives of BI Group and RG Brands, practical issues were discussed, including optimizing supply chains and expanding market presence. The companies presented their production capabilities and potential projects where DBK and KazakhExport could play a role. The financial institution noted that this cooperation will allow Kazakh companies to scale their projects in Uzbekistan more confidently, backed by accessible financing. Additionally, KazakhExport's involvement provides insurance protection for deals, minimizing risks for both DBK and Uzbek banks.
The parties also explored prospects for direct financing from the bank under KazakhExport's insurance coverage. The agency emphasized that this approach creates an integrated model of state support, where development institutions act as a unified financial framework, reducing risks and improving access to financing for businesses engaged in foreign economic activity.
KazakhExport identified strategic synergy with DBK as a key factor in strengthening the position of domestic producers in foreign markets.
"Operating within the unified financial framework of the Baiterek holding, development institutions provide comprehensive support to exporters—from insurance and collateral enhancement at the investment stage to trade finance, pre-export financing, and export contract insurance during operations," the agency stated.
Business leaders are confident that trade between the two countries continues to show steady growth. Shifting from basic trade transactions to complex project financing through the Business Cooperation Council (BCC) and export credit agencies (ECAs) will not only boost Kazakhstan's share of non-commodity exports but also reduce borrowing costs for Uzbek buyers of Kazakh-made goods. At the same time, this will strengthen Kazakhstan's position as a key financial hub in Central Asia.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
