OREANDA-NEWS. Kazkommertsbank, the leader of Kazakhstan banking system, and Export-Import bank of China had signed a two-side credit agreement to the sum of $34 million for financing of importation of telecommunication equipment of theleading Chinese producer Huawei Technologies Co., Ltd. to new GSM operator in Kazakhstan - Mobile Telecom Service LLP, the Kazakhstan Stock Exchange news division reports.

The agreement was signed on November 8 in Astana with presence of the deputy prime-minister Mr. Umirzak Shukeyev and the deputy prime minister of China's State council Ms. U I, in the framework of the fourth session of Kazakhstan-Chinese
committee for cooperation, which is the main coordinating body of cooperation between two countries.

In accordance with terms of the credit agreement, financing will be provided to Mobile Telecom Service LLP with the aim of further development of the network as GSM operator of RK under the brand "NEO", with the use of technical and distributional base of Kazakhtelecom JSC.

It is notable that Eximbank of China, according to the deal, would provide the credit for 7 years' term with flexible schedule of payment of the principal debt, oriented towards the terms of generating profit by the given project.

Kazkomemrtsbank have a many years' experience of work with many export-credit agencies and Eximbanks all over the world, and with the concluding of credit agreement with Eximbank of China is widening the geography of business connections, opening  new possibilities for clients of the bank working with Chinese partners. The terms of financing of Eximbank of China are profitable for clients both from point of view of the terms and cost of financing," the managing director of Kazkommertsbank JSC Magzhan Auezov told during the ceremony of signing.

Geographical proximity, extended common borders of China and Kazakhstan, and, as a consequence, the rapid growth of commodity turnover between our countries create the needed conditions for close cooperation of Kazakhstan banks with
banks of China. A first credit agreement of Kazkommertsbank and Export-Import bank of China will start a mutually beneficial cooperation between two banks on the long term and profitable basis, the participants of the agreement announced.

Mobile Telecom Service LLP is the new GSM-operator in Kazakhstan, providing its services under tthe rade mark "NEO". Licenses for provision of cell connection services of Mobile Telecom Service company are covering the whole territory of Kazakhstan. Commercial start of network had taken place on February 14, 2007. For today, the network of the company covers 45 cities of Kazakhstan. Widening of the network is fast: to the end of year 2007 the company plans to provide 84 cities and settlements with connection.

Eximbank of China, a state financial institution of China, was created for assistance to the international trade. The main mission of the Bank is the financial support of export of Chinese goods and services of high technological fields to foreign
markets, maintenance of the state policy in industry, external trade and economy.

Kazkommertsbank - the largest private financial institution in CIS (by ranking of Interfax agency) with assets exceeding $23 bn by non-audited data as of September 30, 2007. In the end of year 2006, Kazkommerstbank conducted the IPO on the London stock exchange. The Bank stands as the largest crediting body of the real economy sector of Kazakhstan. Since the beginning of the current year, the volumeof loans to clients minus reserves for devaluation increased by 52..4% and made $18.276.