- EBRD providing new permanent US$ 210 million trade finance facility to four Uzbek banks
- Asakabank, Ipoteka Bank, NBU and UzPSB to support private exporters and importers
- More opportunities for domestic businesses
Private domestic businesses, including small and medium-sized enterprises (SMEs), in Uzbekistan will be better able to import necessary goods, services and equipment and export their products following a trade finance deal between the European Bank for Reconstruction and Development (EBRD) and four local banks.
New permanent TFP limits for the four local banks worth US$210 million under the Bank’s Trade Facilitation Programme (TFP) will help Uzbek exporters and importers to better manage the disruptions in trade and supply chains caused by the war on Ukraine and its impact on the Russian and Central Asian economies.
New permanent Trade finance limits of US$ 60 million to Asakabank, US$30 million to Ipoteka Bank, US$40 million to the National Bank for Foreign Economic Activity of Uzbekistan (NBU) and US$80 million to UzPromstroybank (UzPSB) will allow Uzbek businesses to better manage commodity stocks and plan for longer trade cycles.
Following the addition of new permanent Trade Finance limits, the total Trade Finance limits for the four local banks have reached USD80mln for Asakabank, USD55mln for Ipoteka Bank, USD70mln for NBU and USD100mln for Uzpromstroybank.
The four financial institutions representing the group of largest Uzbek banks jointly operate over 170 branches across the country and provide services to thousands of private domestic businesses. They are in a good position to stimulate foreign economic activity of local firms and support critical imports and exports.
EBRD President Odile Renaud-Basso said: “The importance of trade has grown immensely in these turbulent times. We are supporting Uzbek importers and importers by opening new permanent limits to our partner-banks, which will reach out to businesses across the country.”
TFP promotes international trade to, from, and within the Bank’s countries of operations, including Uzbekistan. Through the programme, the EBRD provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in these countries.
TFP provides access to finance for private exporters and importers, including small businesses, strengthens local capacity in trade finance, compliance and advances trade finance skills.
The EBRD’s Trade Facilitation Programme currently works with seven local banks in Uzbekistan enabling their private corporate clients, including SMEs, trade internationally. Since the re-establishment of operations in Uzbekistan in 2017, TFP has facilitated almost 1,000 trade transactions worth over €700 million. In 2021 alone TFP supported 356 transactions for the amount of €210 million making Uzbekistan the most active participant of the Programme among 29 countries, where TFP operates.
To date, the EBRD has invested more than €2.85 billion through 106 projects in Uzbekistan.