|
EBRD equity investment in Uzbek bank
To widen the competitive base of Uzbekistan's banking sector, the European Bank for Reconstruction and Development (EBRD) is making a US$ 5 million (ECU 4.1 million) equity investment in UzDaewoo Bank (UZB). This new bank will provide commercial as well as investment banking services for local private sector companies.
"It is the EBRD's firm belief that the emergence of a modern and efficient financial intermediary would play a catalytic role in mobilising additional funds in the region," noted Ron Freeman, First Vice President of the EBRD. "UZB is a reliable vehicle for the transfer of relevant skills and know-how, such as the development of sound banking practices, credit and risk management and new product development, which are currently in great demand in Uzbekistan."
Joon Huh, Chairman of Daewoo Securities Company Limited, main sponsor of UZB, said: "As we strive to become a customer-focused bank, our goal is to gain a strong position in the market by providing high-quality banking products at affordable prices and with maximum efficiency."
UZB's initial capital will be US$ 20 million, of which the EBRD's equity participation is 25 per cent. The other sponsors are Daewoo Securities Company Limited (55 per cent), KorAm Bank (10 per cent), the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (5 per cent) and Turon Bank (5 per cent). UZB will focus on foreign trade operations, credit activities and cross-border trade-related payment services.
The EBRD has funded four other projects in the financial sector in Uzbekistan, worth a total of US$ 116.6 million (ECU 91.8 million), including investment in ABN AMRO NB Uzbekistan.
Currently there are 32 commercial banks in Uzbekistan, sixteen of which have foreign exchange licences and participate in the Currency Exchange. A number of foreign banks have representative offices in Uzbekistan as well.
|
