ITFC to expand its operations in Uzbekistan

Finance Materials 13 March 2020 12:03 (UTC +04:00)
ITFC to expand its operations in Uzbekistan

BAKU, Azerbaijan, Mar. 13

By Ilkin Seyfaddini - Trend:

International Islamic Trade Finance Corporation is contributing towards the increase of garment export from Uzbekistan, Marjorie Chapas, senior account manager for ITFC, told Trend in an interview.

"The first Framework Agreement between the ITFC and Uzbekistan, which was signed in March 2018, earmarked a $100 million line of financing to support the country’s SME trade and working capital needs. The cooperation was expanded through conclusion of $500 million Framework Agreement in January 2019 which covered sovereign financing and capacity building activities," she said.

"This financing is important for Uzbekistan as it seeks to improve its domestic manufacturing and processing capabilities, and its exports. The sovereign financing directed to the cotton and textile sector, is helping financially support the new textile clusters as it covers the whole cycle: from cotton production by local farmers to export of garment by textile clusters," Chapas said.

She pointed out that Uzbekistan, with the largest population in the region, has all the potential to become an important market for Islamic finance.

"The ITFC’s mission is to advance trade and improve lives by contributing to the development of markets and trading capacities to help all OIC member countries do business more effectively with each other and the rest of the world. By facilitating higher quality production and exports from OIC countries (to each other and non-OIC nations), the ITFC achieves its mission of alleviating poverty and fostering economic development within Uzbekistan," said Marjorie Chapas.

Chapas also noted Uzbekistan's wealth of hydrocarbon resources, significant production and export capacities for gold and cotton, which, according to ITFC, have great potential for export growth.

"The needs of SMEs in Uzbekistan are significant and ITFC will expand its activities in the country to serve them better by engaging with local partners to deliver not only financial solutions but strategic support services that enable SME’s to build their businesses," said Marjorie Chapas.