The International Islamic Trade Finance Corporation, a member of the Islamic Development Bank Group, has approved a Murabaha Financing Facility of $10m for the Uzbekistan Joint Stock commercial bank, Agrobank, to support private sector development through the provision of financing for local small and medium enterprises in the country.
The financing, implemented under a $500m framework agreement signed between 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.
The Chief Executive Officer of ITFC, Hani Salem Sonbol, said of the partnership, “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 a 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.”
