Uzbek bank signs loan agreement with Dutch FMO

Finance Materials 6 September 2019 11:23 (UTC +04:00)

Baku, Azerbaijan, Sept. 6

By Fakhri Vakilov - Trend:

Joint-stock innovative commercial bank of Uzbekistan Ipak Yuli signed a loan agreement with the Netherlands FMO (Financierings-Maatschappij voor Ontwikkelingslanden N.V.) on the allocation of a synthetic credit line in Uzbek soums in the equivalent of $20 million, Trend reports via Uzbek media.

The purpose of the credit line is to finance promising projects in the private sector in two areas: improving energy efficiency and supporting small businesses.

Ipak Yuli Bank was the first Uzbek bank to attract a similar line for energy-efficient and environmentally friendly projects from FMO.

This line will help the Bank’s customers finance the purchase of modern equipment to optimize the cost of energy consumption, and also makes it possible to take advantage of the benefits of renewable energy sources.

Eligible projects are as follows:

- Development, sale and installation of equipment for renewable energy;

- Replacement of old production equipment with modern energy-saving;

- Replacement of vehicles with gasoline and diesel engines with electric, hybrid and compressed natural gas engines;

- Agricultural projects to avoid soil pollution, promote the use of local stocks of cattle and plant varieties;

- Others.

In addition, FMO borrowed funds can be used to support small enterprises in Uzbekistan to finance micro-finance projects and agricultural enterprises.

FMO is the Netherlands Development Bank, created in 1970 to support sustainable private sector growth in emerging markets by investing in business, projects and financial institutions. Ipak Juli Bank has been successfully cooperating with the Netherlands Development Bank FMO since 2013.


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