Arab News, Wed, Mar 06, 2024 | Shaban 25, 1445
ITFC signs deals worth $715m to support private sector, banks in Uzbekistan
Saudi Arabia:
The International Islamic Trade Finance Corp. signed several agreements with
Uzbekistan worth $715 million at the Arab Coordination Group meeting that
concluded in Tashkent on Tuesday.
ITFC, a member of the Islamic Development Bank
Group, has been actively supporting the government and local banks in Uzbekistan
since 2018, said a press release. It said the financing is geared toward
supporting the production of cotton and wheat, ensuring food security, and
helping stabilize prices for essential commodities, as well as supporting the
trade finance needs of private sector, small and medium enterprises.
ITFC has also pledged to extend support to local
banks with technical assistance through new Integrated Trade Solutions in the
coming years, the release said.
“The collaboration also encompasses the ‘Trade
Connect Central Asia+’ program, a flagship initiative developed by ITFC. The
TCCA+ targets the expansion and economic integration of trade and investment
cooperation among six countries: Azerbaijan, Kazakhstan, the Kyrgyz Republic,
Tajikistan, Turkmenistan, and Uzbekistan,” it added.
ITFC CEO Hani Salem Sonbol said: “The agreements
signed today strengthen our collaboration with Uzbekistan and are a testimony of
our commitment to the socio-economic development in Uzbekistan and the Central
Asia region at large.”
The first agreement worth $600 million aims to
strengthen areas of cooperation between ITFC and Uzbekistan, focusing on trade
finance, agricultural and food security financing for the public sector, support
for state-owned enterprises, and financing for SMEs in sectors like
pharmaceuticals, food and agriculture, textile, and manufacturing.
The second agreement is a US$100 million Murabaha
financing deal that seeks to contribute to food security and agriculture in
Uzbekistan.
Additionally, ITFC signed a line of trade
financing agreement jointly with AgroBank and its subsidiary SmartBank,
amounting to $15 million. This agreement will support SMEs and the private
sector in Uzbekistan. The line of financing will provide Shariah-compliant trade
finance solutions to the private sector and SME clients of AgroBank and its
subsidiary SmartBank. This financing will be focusing on sectors like food and
agriculture, manufacturing, and textile, and will aim to promote the financing
of green projects.