The Asian Development Bank (ADB) and Sanoat Qurilish Bank (SQB) today signed a revolving credit facility agreement during the Uzbekistan Economic Forum. Under the new agreement, ADB’s Trade and Supply Chain Finance Program (TSCFP) will provide up to $16.6 million to support SQB’s trade finance transactions.
The revolving credit facility will enhance SQB’s capacity to provide trade-related loans to its clients, including to its fast-growing base of small and medium-sized enterprises. Trade finance involves short-duration loans and guarantees, which means the amount of the revolving credit may be used multiple times a year.
“SQB has been ADB’s partner since 2013, and its mission to support trade is also an important focus for ADB,” said ADB Vice-President Shixin Chen. “This new agreement will provide additional access to finance especially for small businesses in Uzbekistan, further supporting their growth as well as the country’s overall economic development.”
TSCFP partners with eight banks in Uzbekistan and has supported about $2 billion in trade through 707 trade transactions as of July 2021. Of this amount, 61% was cofinanced by the private sector. This cofinancing leverages ADB resources to help ADB’s developing member countries to further grow their exports and create more jobs.
“We are pleased to be at the forefront of providing much-needed trade finance products to our corporates and small and medium-sized enterprise clients. It will not only diversify and strengthen our client base, but also serve our purpose to contribute to Uzbekistan’s sustainable economic growth,” said SQB’s Deputy Chairman of the Board Bakhtiyor Rakhmatov.