The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group and Asia Alliance Bank have inked an agreement to bolster trade financing for Uzbekistan's private sector, particularly small and medium-sized enterprises (SMEs).
Under the agreement, ITFC will provide a Line of Financing of US$ 10 million to Asia Alliance Bank, aimed at meeting the trade finance requirements of private sector clients, with a specific emphasis on SMEs. Notably, this Line of Trade Financing facility will cater to the import and pre-export financing needs of private sector clients, including SMEs, in Uzbekistan. The funds will be extended under the Murabaha structure, ensuring adherence to Shariah principles.
Mr. Nazeem Noordali, Chief Operating Officer at ITFC, expressed his enthusiasm about the collaboration noting that Asia Alliance Bank is the first bank ITFC partnered with in Uzbekistan, saying, "Since 2018, ITFC has allocated US$19 million in financing to Asia Alliance Bank, reflecting our longstanding commitment to fostering economic growth and development in the country. This latest agreement further solidifies ITFC's dedication to supporting the private sector and SMEs in Uzbekistan."
Mr. Obidjon Norkulov, First Deputy Chairman of The Management Board at Asia Alliance Bank, commented on the significance of the agreement, stating, "The conclusion of this Agreement is aimed at maintaining and promoting the sustainable development and prosperity of small and medium-sized businesses in Uzbekistan, through the provision of financing that complies with Shariah principles. The allocated US$ 10 million will be used to support Asia Alliance Bank's SME clients in meeting their trade finance needs."
Since 2018, ITFC has approved Line of Trade Finance Facilities totaling US$ 423 million in favor of 12 banks in Uzbekistan, highlighting the Corporation's substantial contributions to the country's trade finance landscape.
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About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of people across the world. Commencing operations in January 2008, ITFC has provided US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for 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.
