Background

IBEC strengthens trade and financial cooperation with Uzbekistan

The International Bank for Economic Co-operation continues to expand its presence in Central Asia. The Bank has provided a six-month targeted trade loan to JSCB Business Development Bank (Republic of Uzbekistan). The funds are aimed at supporting contracts for the supply of industrial and consumer goods, as well as medical products from IBEC member states to Uzbekistan.

The partnership between IBEC and JSCB Business Development Bank was launched in 2020 with the issuance of the first targeted trade finance loan to its predecessor, JSCB Kishlok Qurilish Bank, which at the time focused on financing the agricultural sector and rural infrastructure development. In 2023, the bank redefined its strategic focus towards supporting small businesses. Support for SMEs is one of IBEC’s strategic priorities, which makes the development of this partnership particularly important.

The loan proceeds will support export contracts of companies from IBEC member states for the needs of Uzbekistan’s small and medium-sized enterprises in sectors such as pharmaceuticals, the chemical industry, and the construction sector. Such supplies strengthen economic cooperation between the member states and the Central Asian region, support the sustainable development of key industries, and promote the integration of Uzbek SMEs into international production and supply chains.

The operation is in line with IBEC’s key strategic priorities: the development of international supply chains, the promotion of exports from member states, and the strengthening of economic cooperation with countries of strategic interest. The financing also contributes to the achievement of the United Nations Sustainable Development Goals (SDGs) – in particular SDG 3 (Good health and well-being), SDG 9 (Industry, innovation and infrastructure), and SDG 11 (Sustainable cities and communities).

IBEC and JSCB Business Development Bank intend to continue strengthening their cooperation by expanding SME access to modern financial instruments, creating new opportunities for the growth of international trade, and deepening Uzbekistan’s economic ties with the Bank’s member states.

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