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The International Islamic Trade Finance Corporation (ITFC) and Asia Alliance Bank have signed an agreement to enhance trade finance support for Uzbekistan’s private sector, with a focus on Small and Medium-sized Enterprises (SMEs).
Through this agreement, ITFC will offer a financing line of US$ 10 million to Asia Alliance Bank, aimed at fulfilling the trade finance needs of its private sector clients, particularly SMEs.
This trade finance facility will specifically support import and pre-export financing requirements of private sector entities, including SMEs, within Uzbekistan. The financing will be provided under the Murabaha structure, in compliance with Shariah principles.
Mr. Nazeem Noordali, Chief Operating Officer at ITFC, shared his positive outlook on the partnership, highlighting that Asia Alliance Bank was ITFC’s initial partner in Uzbekistan.
He said, “Since 2018, ITFC has allocated US$19 million in financing to Asia Alliance Bank, reflecting our longstanding commitment to fostering economic growth and development in the country. This latest agreement further solidifies ITFC’s dedication to supporting the private sector and SMEs in Uzbekistan.”
Mr. Obidjon Norkulov, First Deputy Chairman of The Management Board at Asia Alliance Bank, spoke about the agreement’s importance, noting, “The conclusion of this Agreement is aimed at maintaining and promoting the sustainable development and prosperity of small and medium-sized businesses in Uzbekistan, through the provision of financing that complies with Shariah principles. The allocated US$ 10 million will be used to support Asia Alliance Bank’s SME clients in meeting their trade finance needs.”
Since 2018, ITFC has sanctioned trade finance facilities amounting to US$ 423 million for 12 banks in Uzbekistan, underscoring the Corporation’s significant role in enhancing the country’s trade finance sector.
