Senate Ratifies Agreement on Mutual Recognition of Bank Guarantees within the EAEU
The new agreement will simplify the participation of Kazakhstani entrepreneurs in public procurement in member states of the Eurasian Economic Union (EAEU), eliminating the need to obtain bank guarantees abroad.
What Will Change for Businesses?
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Recognition of Bank Guarantees:
- Bank guarantees issued by Kazakhstani banks will now be automatically recognized across all EAEU countries.
- This will reduce costs and time for Kazakhstani companies participating in tenders abroad.
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Previously Existing Challenges:
- Kazakhstani suppliers were required to obtain bank guarantees in the countries where they intended to do business.
- This complicated the process and reduced competitiveness.
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Impact on Entrepreneurs:
- According to Deputy Minister of Finance Dauren Kenbeil, entrepreneurs can now focus on business development rather than bureaucratic procedures.
Benefits for EAEU Businesses
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Time and Cost Savings:
- The ability to obtain guarantees from Kazakhstani banks significantly streamlines the tender participation process.
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Strengthening Integration:
- This agreement fosters deeper economic integration among EAEU countries.
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Boost to Exports:
- Easier access to other union markets will encourage Kazakhstani companies to expand their activities.
Context and Prospects
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Role of the EAEU:
- The Eurasian Economic Union creates a single economic space aimed at facilitating trade and collaboration among member states.
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Forecast:
- The agreement is expected to strengthen the role of Kazakhstani companies in international tenders and enhance their standing within the EAEU.
Conclusion
The ratification of the agreement on mutual recognition of bank guarantees creates new opportunities for Kazakhstani businesses. It marks a step toward reducing barriers and advancing economic integration within the EAEU.
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