BAKU, Azerbaijan, Jun. 23
By Nargiz Sadikhova - Trend:
The European Bank for Reconstruction and Development (EBRD) is providing a $40 million loan to UzPromstroybank (UzPSB) for on-lending to Uzbekistan’s growing private sector, Trend reports with reference to the EBRD.
"Despite its increasing importance, access to finance remains a key challenge for the private sector in Uzbekistan, which generates around 50 percent of the country`s GDP. The situation has deteriorated as a consequence of the coronavirus pandemic. The EBRD financing will support the growth and expansion of the operations of small and medium-sized businesses in the country," the report said.
The EBRD credit line is expected to help the bank to grow and diversify its client base and target firms in regions outside the capital. The funds are part of the EBRD’s response to the coronavirus pandemic and its economic impact.
"The funds from by the EBRD will also contribute to the further commercialization, greater efficiency and competitiveness of the financial institution. These essential improvements, together with best international banking practices, which the EBRD will bring to UzPromstroybank’s operations, will be part of the pre-privatization support provided by the EBRD in agreement with the authorities of Uzbekistan. Once implemented, they will help transform UzPSB into a modern, profitable and competitive financial institution," the EBRD said.
To date, the EBRD has invested €1.85 billion through 79 projects in Uzbekistan’s economy.
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