Uzbekistan’s agriculture export bank gets banking license

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TASHKENT (TCA) — The Central Bank of Uzbekistan has issued a license for banking operations to the country’s youngest credit and financial institution, UzAgroExportBank, the Jahon information agency reported.

The establishment of the Bank was initiated by the President of Uzbekistan in January 2017. The Board includes the Fund for Reconstruction and Development of Uzbekistan (75%), the National Export-Import Insurance Company Uzbekinvest (10%), Uzagrosughurta (5%), Kafolat IC (5%) and Uzbekinvestholding (5%). The statutory fund of the new Bank is 10 million euros.

The new bank will specialize in financing investment projects on the development of production and exports of agro-industrial products. It also intends to assist clients in developing strategies to promote fruit and vegetable and other agricultural products to international markets jointly with foreign banks, financial institutions, diplomatic and trade missions.

The head of state exempted UzAgroExportBank and its branches for five years from the date of state registration from all types of taxes and mandatory contributions to state trust funds. By January 1, 2020, the governing body of the new bank is required to draw a strategic foreign investor into the authorized capital with a share of as much as 15 percent.

Today, there are 27 banks in Uzbekistan. As of January 1, 2017, the total capital of the banking system exceeded 9.4 trillion soums, a 1.2-fold growth compared with the beginning of 2016. The country’s bank assets have increased 1.2 times and reached 80.4 trillion soums.

Sergey Kwan

TCA