The Islamic Corporation for the Development of the Private Sector has extended to the Uzbek Industrial and Construction Bank a $25m “Shari’ah-compliant Line of Financing Agreement” to boost private sector businesses, especially Small and Medium-sized Enterprises.
The ICD, a private sector arm of the Islamic Development Bank Group, made this known in a statement on Tuesday.
It stated that the extended third line of financing facility was to promote Islamic finance, improve financial inclusion and support private sector development in Uzbekistan.
ICD Chief Executive Officer, Mr. Ayman Sejiny, said, “This Line of Financing facility will be utilised by Uzbek Industrial and Construction Bank to support economic activities and recovery during the COVID-19 pandemic and beyond.
“SMEs have a crucial role to play in a country’s development. ICD is focusing on increasing access to Islamic finance by channeling funds to established financial institutions in its member countries,” Sejiny added.
On his part, Chairman of the Management Board of Jharkhand State Cooperative Bank, Mr. Sakhi Annaklichev, recalled, “In fact, the bank benefited from the first line ($12m) from ICD in 2009 and the second line ($6m) in 2002. The lines enabled the bank to support several SMEs by financing projects in various vital sectors such as production, agriculture, construction, and transport.
“We thank ICD for extending this facility in challenging times caused by COVID-19, when banks need to support their clients, especially SMEs.”
Get real time update about this post categories directly on your device, subscribe now.