TASHKENT, Uzbekistan, October 21. The European Bank for Reconstruction and Development (EBRD) is currently exploring the possibility of providing a three-year senior unsecured loan of up to $20 million to Ipak Yuli Bank, a major private bank under Uzbekistan’s Green Economy Financing Facility II (GEFF II), Trend reports.
The approval date is scheduled for November 28, 2023.
The GEFF II Loan I will contribute towards building a green economy in Uzbekistan by facilitating the expansion of energy efficiency investments in a gender-responsive way.
The project builds on the successful implementation of previous green financing operations with Ipak Yuli Bank and will scale up the bank's green activities. Ipak Yuli Bank will benefit from comprehensive technical assistance (TC) to further strengthen its internal capacity for financing green projects.
As per EBRD, Ipak Yuli Bank has committed to the development and implementation of a transition plan in order to improve its business practices in relation to climate risk management and align its financial flows with the goals of the Paris Agreement.
“The transition plan will set out time-bound targets, actions, and milestones through which Ipak Yuli Bank will improve its business practices in relation to climate risk management, progressively leading to the alignment of its financing,” the bank noted.
Meanwhile, following the reengagement with Uzbekistan in late 2017, the EBRD approved a 5-year country strategy in 2018.
According to the head of the EBRD office in Uzbekistan, Andi Aranitasi, those priorities included the enhancement of competitiveness by strengthening the role of the private sector’s role in the economy, as well as the promotion of green energy and resource solutions across sectors.
