The financing will support production of cotton and wheat and the trade finance needs of the private sector, especially small and medium enterprises (SMEs); ensure food security; and help stabilise prices of essential commodities.

The first agreement worth $600 million aims at strengthening areas of cooperation between ITFC and Uzbekistan, focusing on trade finance, agricultural and food security financing for the public sector, support for state-owned enterprises, and financing for SMEs in sectors like pharmaceuticals, food and agriculture, textile and manufacturing.

The second agreement is a $100-million Murabaha financing deal that will contribute to food security and agriculture in Uzbekistan.

ITFC has also pledged to extend support to local banks with technical assistance through new Integrated Trade Solutions in the coming years, according to a newspaper report in Saudi Arabia.

ITFC, a member of the Islamic Development Bank Group, has been supporting government and local banks in Uzbekistan since 2018.

The collaboration also covers the ‘Trade Connect Central Asia+’ programme, a flagship initiative by ITFC that targets expansion and economic integration of trade and investment cooperation among six countries: Azerbaijan, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan.

ITFC also signed a $15-million line-of-trade financing agreement with Uzbekistan’s AgroBank and its subsidiary SmartBank to support SMEs and the private sector in the latter, an IFTC release said. This financing will focus on sectors like agriculture, manufacturing and textile, and will aim to promote financing of green projects.

Fibre2Fashion News Desk (DS)