Uzbek bank plans to attract China Development Bank's credit line worth $100 million
Uzbekistan, Tashkent, Oct. 2 /Trend D.Azizov/
National Bank for Foreign Economic Activity of Uzbekistan (NBU) plans to attract a credit line of China Development Bank (CDB) in the amount of $100 million to finance investment projects in the sphere of small business and private entrepreneurship, a source in the Uzbek bank's management told Trend on Wednesday.
According to agency's interlocutor, a memorandum was signed between the banks during Chinese President Xi Jinping's visit to the country in September 2013.
The representative of National Bank for Foreign Economic Activity of Uzbekistan said that it will be the fourth credit line, attracted from the CDB to support small business.
In May 2006, the Bank attracted CDB's credit line for trade financing in the amount of $20 million for a period of nine years, with a two-year grace period at an annual interest rate based on LIBOR plus 1.5 percent.
In August 2007, the CDB opened a credit line of $60 million for the National Bank for Foreign Development to finance projects in the sphere of small business and private entrepreneurship for 12 years, including a grace period of 2.5 years on LIBOR plus 1.2 percent per annum.
In June 2010, the CDB and the National Bank of Uzbekistan signed a loan agreement to open a credit line in the amount of $75 million.
The credit line was opened without state guarantees and without insurance on the part of the export-import agencies. In total 162 projects worth $74.99 million have been financed with the funds of this credit line, the National Bank of Uzbekistan said.
National Bank for Foreign Economic Activity has funded projects in the area of small business, using funds from credit lines of Export-Import Bank of China, China Development Bank, Export-Import Bank of Korea, National Bank of Pakistan, Asian Development Bank, International Finance Corporation, German Development Bank (KfW), OPEC Fund, Islamic Development Bank, Malaysian, Egyptian and German banks.
National Bank for Foreign Economic Activity of Uzbekistan is the largest bank in the country, established in September 1991 as a government agent in international financial markets. Currently the bank acts as a universal commercial bank. The bank's only shareholder is the Cabinet of Ministers of Uzbekistan.
The bank has 14 regional offices, 92 branch, and Asia-Invest Bank subsidiary bank in Moscow. The bank serves about three million individuals and legal entities. Correspondent relations have been established with 650 foreign banks.
In 2012, the bank's assets, calculated by the International Financial Reporting Standards (IFRS) rose by 19.9 percent compared to the same period in 2011 - up to 9.443 trillion soums, credit portfolio rose by 17.6 percent up to 5.512 trillion soums, own capital increased by 13.4 percent, up to 875.049 billion soums.
The official exchange rate on October 2 is 2152.51 sum / $ 1.