The European Bank for Reconstruction and Development (EBRD) is stepping up its support to Uzbek exporters and importers by extending a new trade finance facility of up to US $20 million to UzPromstroybank to stimulate international and regional trade, the Bank said on March 21. UzPromstroybank is the country’s third largest bank with a network of 45 branches.
The longer-tenor funds will be available under the EBRD’s Trade Facilitation Programme (TFP). Up to 50 per cent of the TFP limit to UzPromstroybank can be provided as cash advances for pre-export and post import financing.
The TFP promotes international trade to, from, and within the EBRD countries of operations, including Uzbekistan. Through the Programme, the Bank provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in the countries of operations.
UzPromstroybank is the country’s third largest bank with a network of more than 140 offices.
To date, the EBRD has invested €1.3 billion through 70 projects in the economy of Uzbekistan.
A new approach by the Uzbekistan authorities has allowed the EBRD to re-engage in the country, open a new Resident Office in Tashkent and prepare a new Country Strategy adopted by the Board of Directors in September 2018.
