Bank TuranAlem will use the funds to finance purchases from Israeli exporters.
Bank Hapoalim (LSE: BKHD; TASE: POLI) has signed an agreement with Kazakhstan’s Bank TuranAlem to provide a credit line, backed by Ashra Israel Export Insurance Corp. Ltd., to finance Israeli exports to that country. The credit line will finance 85% of medium and long-term export contracts. Bank TuranAlem is one of Kazakhstan’s largest banks.
Bank TuranAlem will use Bank Hapoalim’s credit line to provide matching loans to Kazakh companies. The loans will finance purchase of Israeli goods and services in the irrigation and agriculture, telecommunications, medical devices and healthcare, infrastructures, education, environmental, and other sectors. In this way, Bank TuranAlem guarantees that the Israeli exporters that the contract will be carried out under cash terms. Ashra and Bank Hapoalim bear most of the financial risk.
Ashra is a government company that insures export contracts for periods of up to 12 years.
Published by Globes [online], Israel business news - www.globes.co.il - on August 20, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007