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International Islamic Trade Finance Corporation (ITFC) Extends US$ 15 million Financing Support to Private Sector in Uzbekistan

Published: February 15, 2024

Author: TEXTILE VALUE CHAIN

The financing agreement with Aloqabank will contribute to efforts to strengthen the private sector and SMEs in the country

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JEDDAH, Kingdom of Saudi Arabia, February 14, 2024/ — The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, has signed a trade financing agreement with Aloqabank, Uzbekistan. The agreement is in line with ITFC’s commitment to support the private sector, especially SMEs in OIC member countries in general and in Uzbekistan in particular.

Extended under the Murabaha structure, the US$ 15 Million facility will support the import and export financing needs of actors in the private sector. The facility was signed by Mr. Abdihamid Abu, ITFC’s General Manager, Trade Finance, and Ms. Kammuna Irisbekova, Chairman of the Management Board, Aloqabank.

Commenting on the agreement, Mr. Abdihamid said: “The economic potential of Uzbekistan is manifest in many aspects, but most importantly in its private and SME sectors. This underlines our commitment to supporting efforts by partners such as Aloqabank to provide growth financing for small and medium enterprises across industries in the country. We believe that this new agreement will enhance funding access for SMEs and enable them to contribute more to the country’s economic growth.”

On her part, Ms. Kammuna Irisbekova, Chairman of the Board, Aloqabank, added: “Through our alliance with ITFC and Aloqabank, we are not only strengthening our position in the market but also extending vital support to SMEs, the lifeblood of our economy. SMEs play a pivotal role in driving innovation, creating jobs, and fueling economic dynamism. However, they often face numerous challenges, including limited access to financing and resources. By joining forces with ITFC and Aloqabank, we are empowering SMEs with the financial tools, resources, and expertise they need to thrive and succeed. I am confident that together, we will unlock new opportunities, drive sustainable growth, and make a meaningful difference in the lives of entrepreneurs in our country.”

Since 2018, the Corporation has extended facilities in excess of US$ 423 Million to 12 local banks to meet the import and pre-export trade finance needs of the private sector, focusing on SMEs, women-led ventures and contributing to economic growth.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Trade Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socio-economic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.