EBRD channels new funds to Uzbekistan to support trade

Domestic businesses, including small and medium-sized enterprises (SMEs), in Central Asia’s most populated country, Uzbekistan, will be able to continue their business activities despite the outbreak of the coronavirus pandemic, thanks to a new trade finance facility provided by the EBRD to three local banks.

A package of up to US$ 150 million will be made available to Asaka Bank, Ipoteka Bank and UzPromstroybank, which will receive new limits under the EBRD’s Trade Facilitation Programme (TFP). The funds will be used to help Uzbek exporters and importers mitigate the disruptions that severe market conditions have caused in trade and supply chains.

Trade finance limits of US$ 60 million to Asaka Bank, US$30 million to Ipoteka Bank and US$ 60 million to UzPromstroybank will allow Uzbek businesses to better manage commodity stocks and plan for longer trade cycles.

The three financial institutions are long-term EBRD clients, which together operate over 100 branches across the country and provide services to tens of thousands of domestic businesses. They are well placed to promote foreign economic activity by local firms, which is much needed to support the national economy.

Following the decision of the EBRD Board of Directors to provide an emergency €1 billion support package to existing clients in the economies where it invests, including in Uzbekistan, the EBRD has seen huge demand for its financing. The Bank is currently working on the launch of an even larger second package to increase the scope of its assistance.

Original source: EBRD
Published on 16 April 2020