Baku, Azerbaijan, Aug 26
By Fakhri Vakilov-Trend:
Uzbek JSCB Turonbank has signed $16 million agreements with the Islamic Corporation for the Development of the Private Sector (ICD) and the International Islamic Trade Finance Corporation (ITFC) to finance small and medium-sized businesses, Trend reports referring to Uzbek media.
Within the framework of the official visit of the Turonbank delegation to Jeddah (Saudi Arabia), agreements were signed with ICD in the amount of $10 million and MITFK in the amount of $6 million to finance small businesses and private entrepreneurship in Uzbekistan.
The agreement with the ICD will allow small businesses and private enterprises of Uzbekistan to attract long-term financing for up to five years for the purchase of technological equipment and fixed assets. The agreement with ITFC will allow them to attract financing for up to one year to replenish working capital (purchase of raw materials and goods).
These are the first transactions of Turonbank to attract foreign direct investment.
The Islamic Corporation for the Development of the Private Sector is a multilateral development financial institution and part of the Islamic Development Bank (IsDB) Group. It was established in November 1999 to support the economic development of its member countries through financing private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies and encouraging cross border investments. Currently, the shareholders of ICD are IsDB, 54 Islamic countries and five public financial institutions.
The International Islamic Trade Finance Corporation is an autonomous entity within the Islamic Development Bank Group created with the purpose of advancing trade to improve the economic condition and livelihood of people across the Islamic world.
ITFC has consolidated all the trade finance businesses that used to be handled by various windows within the IDB Group.
Follow author on Twitter:@vakilovfaxri