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EBRD considering loan to Uzbekistan for building green economy

Uzbekistan Materials 14 October 2023 03:03 (UTC +04:00)
EBRD considering loan to Uzbekistan for building green economy
Kamol Ismailov
Kamol Ismailov
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TASHKENT, Uzbekistan, October 14. The European Bank for Reconstruction and Development (EBRD) is currently exploring the possibility of providing a three-year senior unsecured sovereign loan of up to $10 million to Joint Stock Commercial Bank with Foreign Capital Hamkorbank under Uzbekistan Green Economy Financing Facility II, Trend reports.

The approval date is scheduled for October 27, 2023.

The GEFF II Loan I will contribute towards building a green economy in Uzbekistan by facilitating the expansion of energy efficiency investments in a gender-responsive way.

The primary objectives of the project are the successful implementation of previous green financing operations and the scaling up of Hamkorbank's green activities. Hamkorbank will benefit from comprehensive technical assistance (TC) to strengthen its internal capacity for financing green projects.

The proceeds of the loan will be lent to eligible sub-borrowers implementing qualifying sub-projects in line with the technical and financial eligibility criteria in accordance with the standard requirements set in the policy statement for GEFF II Uzbekistan. Hamkorbank, founded in 1991, is a leading privately owned bank in Uzbekistan. In 2022, the bank ranked 10th largest among 31 banks, with a market share of 3 percent of total assets.

Meanwhile, following the reengagement with Uzbekistan in late 2017, the EBRD approved a 5-year country strategy in 2018.

According to the head of the EBRD office in Uzbekistan, Andi Aranitasi, those priorities included the enhancement of competitiveness by strengthening the role of the private sector’s role in the economy, as well as the promotion of green energy and resource solutions across sectors.

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