Trade Finance and Russian Export Support

Trade finance is one of the Bank’s priority areas of development. As in previous years, diversification of partners and extension of the product line to meet the needs of existing clients and to attract new ones remain the main tasks of the Bank in this area apart from retention of the portfolio quality and risk control.

A wide network of partners, high credit ratings, accumulated experience and professionalism of the employees, a customer-oriented approach, and high quality of the services allow the Bank to service global trade flows and offer its customers the most attractive conditions of transactions using the entire range of trade and export financing instruments.

Assisting its corporate customers in the development of foreign markets, the Bank extended the number of its partners in the sphere of trade finance in 2019. Transactions with banks from new regions were implemented successfully, including banks from Egypt, Saudi Arabia, Korea, and Uzbekistan, using such instruments as uncovered confirmed documentary letters of credit and guarantees.

As part of extending its trade finance product line, the Bank launched a new product in 2019—International Factoring without Recourse—which is an extremely promising and demanded instrument on the international market. The Bank continues to develop and improve its products in the said area by implementing transactions under a one-factor or two-factor model, inter alia, with the participation of an export insurance agency. MKB is also focused on further strengthening and development of cooperation with factors from different countries within the international factoring association FCI, the Bank has been a member of since 2018.

Based on the results of 2019, MKB entered the top-5 of the international factoring rating of the Association of Factoring Companies.