Uzbekistan, Tashkent, May 6 / Trend, D.Azizov /
IFC, a member of the World Bank Group, became shareholder of Hamkorbank open joint-stock commercial bank of Uzbekistan and allocated loan to boost financing of small businesses.
IFC is providing its long-term partner Hamkorbank, a midsize private bank in Uzbekistan, with debt and equity finance to support the bank's growth and expand access to finance for small and medium enterprises, the IFC statement said.
IFC will invest $3 million in Hamkorbank's equity and provide the bank with a five-year US$2 million loan for lending to micro, small, and medium enterprises. As an equity investor, IFC will help the bank improve its corporate governance practices and strengthen its risk management and operating practices. The debt financing will expand access to finance for micro, small, and midsize companies in rural areas of Uzbekistan, particularly in the Fergana Valley and Karakalpakistan.
Hamkorbank has been receiving advisory support from IFC since 2001, helping the bank develop prudent credit and risk-management practices. To date, IFC has provided $4 million in loans to Hamkorbank.
Hamkorbank open joint-stock commercial bank was founded in 1991 and currently it possesses 26 branches and 125 mini-banks across Uzbekistan. The bank started its work in Andijan city and now operated in all regions of Uzbekistan, rendering banking services to corporate clients and population.
In 2009, the bank's assets increased by 26 percent - up to 292 billion soums, total amount of loans increased by 18 percent - up to 153 billion soums, own capital - 36 percent to 39 billion soums. The authorized capital increased by 15 percent - up 17.4 billion soums.
The bank uses loans of the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) for lending small entrepreneurship. Since 2002 Hamkorbank drew $ 17 million loans from these financial institutions.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis.
May 5, Official exchange rate is 1569,23 soum to $1.