Baku, Azerbaijan, Aug 28
By Fakhri Vakilov-Trend:
The National Bank of Uzbekistan (NBU) has signed a loan agreement with the China Development bank (CDB) to attract the first credit line in Chinese yuan (RMB), Trend reports citing the NBU press service.
The total loan amount is 500 million RMB (approximately $70 million).
The agreement was signed on August 27 in Beijing as part of the fifth meeting of the Uzbek-Chinese Intergovernmental Cooperation Committee.
"The signing of a loan agreement in RMB is the first such document reached with the leading Chinese financial institution in the history of international cooperation of the National Bank. The main advantage of attracting financing in RMB is the absence of dependence on jumps in the LIBOR rate," the NBU press service noted.
NBU added that settlements on foreign trade contracts in RMB will reduce the costs of currency conversion arising from settlements in the currencies of other countries.
Loans in RMB also reduce the risks associated with exchange rate fluctuations and provide the National Bank with more favorable terms for the cost of financing for the long term, read the message.
Furthermore, this agreement provides for the use of new payment methods in RMB, while payments in RMB will be transferred to the supplier’s bank account directly in China, which significantly reduces the time for payments between the two countries and counterparts.
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