Uzbek bank boosts lending at expense of Germany's Commerzbank
Tashkent, Uzbekistan, Jan. 6
By Mamed Dashdemirov – Trend:
Uzpromstroybank JSCB (Uzbek Industrial and Construction Bank) started accepting new applications for financing investment projects within the credit line of Germany’s Commerzbank AG, the Uzbek bank’s Department of Credit Operations told Trend.
The credit line was increased from 150 million euros to 200 million euros in late 2017. The credit line envisages financing of projects in the industry sphere, as well as projects of small business and private entrepreneurship facilities, within the framework of which a borrower needs to purchase technological equipment and special equipment produced in the EU member countries.
The maximum period of lending under the terms of the credit line is 5 years, the minimum amount of credit is 1 million euros at Euribor annual interest rate plus the margin of Uzbek and German banks, this is while Libor 9+ rate is up to 12 months. The issued funds are backed by an export credit agency of one of the EU member countries.
A one-time commission of the bank for the issuance of a loan and a commission for the unspent loan amount are set individually for each specific project, the Uzpromstroybank JSCB said. The ratio between own and borrowed funds in the total cost of the project should be at least 25 percent to 75 percent, respectively.
The cooperation of Uzpromstroybank JSCB and Germany’s Commerzbank started in 1997.