|
EBRD gives US$ 60 million line of credit to National Bank of Uzbekistan
The private sector in Uzbekistan will be given a boost for development by a US$ 60 million credit line from the European Bank for Reconstruction and Development. The agreement was signed yesterday in the presence of Mr Islam Karimov, President of Uzbekistan and Jacques de Larosière, President of the EBRD.
The National Bank for Foreign Economic Activity of the Republic of Uzbekistan will receive the line of credit in three tranches for financing small and medium sized enterprises involved in export-oriented investment projects. Only private enterprises, joint ventures with foreign partners and state enterprises in the process of being privatised will be eligible for financing.
Mr de Larosière said: "This project will help the National Bank function on commercial principles, as stipulated in its charter, and play a crucial role as an effective financial intermediary to assist private entrepreneurs. The credit line will provide what is most needed now for private sector development in Uzbekistan: start-up equity, a source of stable finance for long-term lending and business plan preparation and training."
The maximum size of the sub-loans will be US$ 5 million, but the facility will focus primarily on small projects. Any project requiring foreign exchange above this limit will be referred to the EBRD for consideration of direct financing. Sub-projects are required to be environmentally sound and contribute to the economic development of Uzbekistan
In addition to the credit line, the EBRD will also provide a comprehensive technical co-operation programme to help the National Bank establish a sound business plan, strengthen its credit and project evaluation capability, and provide consultancy assistance to Uzbek small and medium sized businesses.
|
