Baku, Azerbaijan, July 7
Trend:
Uzbekistan Agrobank has signed an agreement on attracting Islamic financing from the Islamic Corporation for the Development of the Private Sector, Podrobno.uz reported.
The agreement is worth of $10 million. This amount will be allocated to finance the projects for the period of up to 5 years under conditions and principles that do not contradict the Sharia. The agreement also provides for a further increase of the amount depending on the successful utilization of the already allocated funds.
Any entrepreneur can apply to the bank and receive funds for the implementation of his investment projects at the expense of the funds under this agreement.
It was earlier reported that the infrastructure of Islamic banking and finance may be created in Uzbekistan in the near future. The Islamic Development Bank will be the main partner and financial donor of the Uzbek side.
The first Islamic Development Bank of Uzbekistan should provide a wide range of standard retail services, including export and import financing, housing financing, commercial real estate financing, leasing, insurance, as well as services in the securities market through structural units.
Also, the new bank should provide structured complex financial products, such as investments in venture capital, as well as in private equity and/or risk hedging funds, and should refinance the banks of the country in order to provide services through "Islamic Windows" for the population and business entities.