September 20, 2007 -- Medium- and long-term financing of import operations by the Eurasian Development Bank will be guaranteed/ensured by the European export credit agencies. EDB and Deutsche Bank signed an appropriate frame agreement last Tuesday, EDB says in a Wednesday statement. According to the statement, this agreement will enable the clients of EDB to borrow monies in order to purchase goods from the European countries including industrial equipment, machinery, machine tools and technologies as well as services associated with these deliveries. About 85% of the value of each trading contract may be paid using borrowed funds with a maturity of seven to ten years. "The frame agreement signed with Deutsche Bank will allow EDB to enjoy better opportunities and offer our customers flexible lending options, best terms and conditions as applied to each particular project. Financing of trade operations is very popular with the clients which are interested in importing capital-intensive fixed assets such as industrial equipment," the statement says.
According to the statement, EDB has already signed similar agreements with other financial institutions, such as the Japanese Bank of International Cooperation, the Nordic Investment Bank and the Islamic Development Bank. EDB is an international financial organization established by Russia and Kazakhstan in January 2006 to develop the competitive environment in the countries, support their steady economic growth and expansion of trading and economic relations. The registered capital of EDB is $1.5 billion.
Source: Kazakhstan General News Wire
