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The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, has approved a Murabaha Financing Facility of US$10 million for the Uzbekistan Joint Stock commercial bank “Agrobank” to support private sector development through the provision of financing for local SMEs in the country.
The financing, implemented under a US$500 million Framework Agreement signed between the Republic of Uzbekistan and ITFC in January 2019, will support import and pre-export financing needs of SMEs in Uzbekistan and contribute to the nation’s recovery from the negative economic impact of COVID-19.
This financing is in line with the ‘recovery’ initiative of IsDB Group ‘3Rs’ Program aimed at supporting member countries to mitigate against the overall impact of the pandemic.
The CEO of ITFC, Eng. Hani Salem Sonbol, spoke of the contribution that the financing will make, saying, “The trade finance agreement between ITFC and Agrobank will support the provision of financing to local SMEs across the country as Uzbekistan’s private sector recovers from the adverse economic impact of COVID-19. The funds, which are allocated under Murabaha structure, will provide needed lifeline to importers and exporters during a time of global economic crisis and help protect the lives and livelihoods of people dependent on the country’s job creating SMEs.”
It is worth-mentioning that ITFC has previously approved six other lines of finance totaling US$46 million in favor of local banks in Uzbekistan since 2018.
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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About the International Islamic Trade and Finance Corporation (ITFC): The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org) is a member of the Islamic Development Bank (IsDB) Group. It was established with the purpose of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commenced operations in January 2008, ITFC has provided more than $51 billion of trade financing to OIC member countries, making the Corporation the leading provider of trade solutions for OIC member countries’ needs. With a mission of being a catalyst for trade development among OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.
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