The agreement seeks to provide line of financing to local banks in Uzbekistan
This is the first operation by International Islamic Trade Finance Corporation (ITFC) in the Republic of Uzbekistan, and marks the start of the implementation of the $100 million framework agreement signed between the Republic of Uzbekistan and ITFC on 6 March 2018.
“This agreement, will support Asia Alliance Bank to play a pivotal role in the development of Islamic trade financing in Uzbekistan,” said Umid A. Khakimov, Chairman of the Board of Asia Alliance Bank.
In a statement by ITFC, the main area of cooperation indicated in the framework agreement is to provide line of financing to local banks in Uzbekistan to support the private sector, SMEs in particular.
This will also help support import and pre-export financing needs of private sector as well as public sector in Uzbekistan, which will ultimately lead to the Republic of Uzbekistan becoming a member in ITFC, according to Zawya.