TASHKENT (TCA) — The European Bank for Reconstruction and Development (EBRD) is providing a boost to domestic importers and exporters in Uzbekistan by opening a limit of up to US$ 20 million under the EBRD’s Trade Facilitation Programme (TFP) to Asaka bank, the EBRD said on September 5.
With 22 branches across Uzbekistan Asaka bank will be well-placed to provide financial resources to domestic companies willing to expand their trade operations.
The trade finance facility will help Asaka bank support import and export transactions, further develop its correspondent banking services and strengthen its trade finance product range.
The 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.
This is EBRD’s latest partner bank to join the programme in Uzbekistan. Trade Facilitation Programme will provide access to finance for exporters and importers, including SMEs, strengthen local capacity in compliance and advance trade finance skills. The focus will be to support private sector transactions and facilitate trade for the “green” technologies, materials and services.
Following the reengagement with Uzbekistan in 2017, the EBRD TFP team has delivered 2 regional conferences and 6 training workshops, which were attended by approximately 500 domestic banking professionals. During 2019-2020 the EBRD will be working with the government to improve legislation and regulation in support of enhanced business environment for international trade finance products, including factoring and financial technologies.
To date, the EBRD has invested €1.3 billion through 70 projects in the economy of Uzbekistan. Support of small businesses is particularly important as the country moves to reform its economy and strengthen its private sector.