EBRD opens $30 mln credit line for Uzbek bank
By Kamila Aliyeva
Uzbekistan’s Ipoteka Bank and the European Bank for Reconstruction and Development (EBRD) signed an agreement to open a $25 million credit line and launch a trade finance program for $5 million.
The agreement on small business projects will finance entrepreneurial ideas throughout the country.
Moreover, the development of this credit line will take place in a ratio of 70/30. That is, 70 percent of the proceeds from this loan will be received by borrowers in the regions of Uzbekistan, and only 30 percent in the city of Tashkent. The maximum amount of funding for small business projects is $1.5 million per borrower.
The program on trade finance will be aimed at developing relations between domestic and foreign enterprises, which will facilitate regional integration and strengthening of correspondent banking services.
It should be noted that the partnership relations between Ipoteka Bank and the EBRD started to form back in 2004, when Ipoteka Bank received the first credit line for financing small business entities.
The EBRD is the largest institutional investor in Central Asia, with close to 11.6 billion euros ($12.3 billion) committed to projects in a variety of sectors, from infrastructure to agriculture, with a focus on private sector development. It has successful experience of bringing innovation to Uzbekistan’s pharmaceutical sector through direct and indirect lending and a number of consultancy projects, which helped companies improve operational and financial management and obtain ISO 9001 and Good Manufacturing Practice (GMP) certificates.
The Bank has to date invested 894 million euros in Uzbekistan. Its current portfolio in the country is 8 million euros.
Currently, the Bank together with the involved ministries and departments of Uzbekistan is in the process of development a draft of the EBRD country program for Uzbekistan, which will further expand the Bank's interaction with the Central Asian nation.
The European Bank for Reconstruction and Development (EBRD) plans to approve a new country program for Uzbekistan next summer.
---
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
Follow us on Twitter @AzerNewsAz