EBRD approves first projects for Uzbekistan
Tashkent, Uzbekistan, Oct. 20
By Diana Aliyeva – Trend:
The European Bank for Reconstruction and Development (EBRD) said that it has approved its first two projects for financing in Uzbekistan.
On October 18, the EBRD’s board of directors approved a financing package of up to $100 million to the National Bank for Foreign Economic Activity of Uzbekistan (aka the National Bank of Uzbekistan, NBU) to enable the bank to increase the availability of funding to private micro, small, and medium-sized enterprises (MSMEs) and enable the NBU to support import and export operations via a Trade Facilitation Program (TFP).
The loan will be split between these two aims, with up to $70 million for the MSME portion and $30 million for trade finance activities.
According the EBRD, the MSME loan “will enable NBU to increase the availability of medium-term funding for private MSMEs in Uzbekistan, which remain underserved,” while the TFP will be able to not only support import and export transactions, but also “further develop its correspondent banking services and strengthen its trade finance product range.”
Moreover, the TFP will allow NBU to “join the EBRD TFP network of over 800 Confirming Banks and to receive advanced trade finance trainings.”
At the same time, Agromir Juice JV Ltd., a manufacturer of juices, juice concentrates, vegetable pastes and other products, will get $10 million of EBRD loan to build a modern warehouse complex in Samarkand province.
Uzbekistan and the EBRD are expected to sign loan agreements for these projects in early November as part of the visit of First Vice President of the EBRD Philip Bennett to Uzbekistan.