CenterCerdit Bank, EBRD sign a risk participation agreement
CenterCredit Bank and the European Bank for Reconstruction and Development report on the signing of a framework risk sharing agreement when jointly working on Kazakh projects, Strategy2050.kz informs.
The agreement is modeled after the EBRD’s global risk sharing programme, under which the EBRD is involved in corporate projects through providing guarantees to commercial banks covering 50% of the risk on borrowers.
The agreement is another milestone for the long-standing fruitful cooperation among CenterCredit Bank and the EBRD, based on the principles of responsibility, respect, as well as trust.“I am pleased to sign the agreement and support all the efforts of CenterCredit Bank on risk sharing,” Bruno Balvanera, managing director for Central Asia at the EBRD.
“We welcome the first such kind project in Kazakhstan, considerably contributing to the availability of credit to economic subjects of the country and to the new, perspective format in risk sharing,” Galim Khusainov, CenterCredit Bank Board Chairman, said.
Bank CenterCredit is first to partner with the ERRD on risk sharing, with the latter opening up a new channel to support the private sector in Kazakhstan.
The programme’s main provisions as follows:
- No limit on sectors (except for EBRD standard limits)
- Advisory support from the EBRD
- Currencies: KZT, USD or EUR
- Amount of funding: between $300 thousand to $20 million
- Standard approval of funds by CenterCredit Bank, with the EBRD’s subsequent approval of guarantees
- Technical assistance to CenterCredit Bank and borrowers, support in terms of technical cooperation and sectorial expertise’ funds.
