Three Uzbek banks plan to draw ADB's credit line worth $50 million

Business Materials 30 March 2010 13:24 (UTC +04:00)

Uzbekistan, Tashkent, March 30 / Trend D. Azizov /

Three Uzbek banks - Agrobank, Hamkorbank and bank Ipak Yuli plan to draw a credit line of the Asian Development Bank (ADB) to the amount of $50 million to microfinance projects in the sector of small private entrepreneurship in 2010, the Association of Uzbek banks reported.

It was reported that the project on the development of microfinance has been included in the program of financial cooperation between the ADB and Uzbekistan for 2010.

It is assumed that $20 million will be allocated to Agrobank and Hamkorbank from the total volume of credit line, $ 10 million - to the bank Ipak Yuli.

According to preliminary terms, means of the credit line will be spent at forming of working capital of small enterprises, the purchase of technology and equipment.

The maximal amount, given to finance a project can not exceed $20,000 in equivalent to local currency.

It is expected that the ADB Board of Directors will consider approval of the project in late April.

This is the second project within the development of microfinance, which Uzbekistan is implementing with the assistance of ADB. In 2002, the ADB has provided the country with a loan of $20 million to support credit unions.

Uzbekistan is the ADB member since 1995. Today, it is the largest recipient of financial institution's loans in Central Asia. Since 1995, the ADB has provided Uzbekistan with $1,29 billion to implement 30 projects in education, agriculture, modernization of transport infrastructure and energy sector and $40.75 million of grants for technical assistance.

Agrobank (one of the five largest banks in the republic) was transformed from Pakhtabank according to the Uzbek President's decree in March last year.

Pakhtabank's main activity was lending to the cotton industry.

In 2009, the bank increased its assets by 44.3 percent compared to 2008 - up to 1,378 trillion soums, credit portfolio - to 1.4 times to 1.018 trillion soums, total capital increased by 31.6 percent to 172, 588 billion soums.

Hamkorbank was founded in 1991. Bank's head office is located in Andijan. The main activity of the bank is lending and financial services to small and medium-sized private entrepreneurship.

The bank uses loans of the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) for lending small entrepreneurship. Since 2002 Hamkorbank drew $ 17 million loans from these financial institutions.

In 2009, the bank's assets increased by 26 percent - up to 292 billion soums, total amount of loans increased by 18 percent - up to 153 billion soums, own capital - 36 percent to 39 billion soums. The authorized capital increased by 15 percent - up 17,4 billion soums.

Joint Stock Innovation Commercial Bank 'Ipak Yuli' was established in 1990. It is one of the banks with assets of $ 418.6 billion soums (up to 38.5 percent in 2009), loans - 151.6 billion soums (up 23.8 percent) and own capital 34.97 billion soums as of January 1, 2010 (increase in 1,5 times).