BAKU, Azerbaijan, Oct. 5
By Klavdiya Romakayeva - Trend:
IFC (International Finance Corporation) will assist Ipoteka Bank to expand its financing to over 28,000 SMEs in Uzbekistan through a pre-privatization loan of up to $35 million, Trend reports with reference to IFC press service.
IFC Director for Europe and Central Asia Wiebke Schloemer held a series of virtual meetings with the leadership of ministries, state agencies, Central Bank of Uzbekistan, and IFC client banks to discuss how IFC can continue to support Uzbekistan as it embarks on ambitious economic reforms. IFC Regional Manager for Central Asia Cassandra Colbert also participated in the meeting.
Looking at challenges and opportunities ahead Colbert listed key sectors of Uzbekistan’s economy that need to be further promoted. These include agriculture, energy, financial services, infrastructure, and manufacturing, all pivotal for employment and inclusive growth.
“The private sector is a fundamental partner in our collective efforts to restore economic stability in Uzbekistan, and, hence, is an important area of focus for the government,” Colbert said.
Colbert added that through a combination of advisory and investment services, IFC looks forward to contributing to a stronger private sector in the country, providing opportunities for people to improve their quality of life.
IFC’s actions to improve electricity supply in the country include:
- preparing the first solar tender in Uzbekistan, which is expected to result in competitive renewable energy prices;
- advising the government on the implementation of two PPP projects which will lead to the creation of photovoltaic solar parks with a combined capacity of 400MW;
- assisting the government to structure a transparent and competitive tender process to develop a 1,200 - 1,500 MW gas-fired power plant in the Syrdarya region.
IFC’s actions to increase access to finance and promote inclusion include:
- assisting Ipoteka Bank to expand its financing to over 28,000 SMEs in Uzbekistan through a pre-privatization loan of up to $35 million equivalent in Uzbek soum. The financing will also help the state-owned bank to transform itself into a commercially viable private bank;
- enabling Ipak Yuli Bank to better manage its currency risks and extend local-currency finance to SMEs;
- providing a $5 million loan to DAVR-BANK to expand financing for micro, small, and medium enterprises, and women-owned businesses to help them grow and create jobs;
- extending trade finance lines for $12 million to Ipak Yuli Bank and Ipoteka Bank to boost cross border trade, supporting Uzbekistan’s exporters and importers;
- supporting the Central Bank of Uzbekistan in promoting electronic financial services and financial literacy in Uzbekistan.
IFC’s actions to support the chemical sector include supporting JSC Indorama Kokand Fertilizers and Chemicals to finance the modernization of its fertilizer plant in the city of Kokand through a $12.5 million long term loan. This is expected to increase the company’s production of fertilizer from less than 100,000 tons to about 350,000 tons of a year, creating new jobs and boosting the country’s agricultural sector.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2020, IFC invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
---
Follow the author on Twitter: @romakayeva
