Tashkent, Uzbekistan (UzDaily.com) — 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 US$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 US$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.

Established in 1922, SQB is the second-largest commercial bank in the Republic of Uzbekistan. SQB is actively involved in structural transformations of the economy, in the implementation of large investment projects for the modernization, technical and technological re-equipment of the economy, as well as financing projects in the corporate and retail segments and small and medium-sized businesses.

Backed by ADB’s AAA credit rating, TSCFP provides loans and guarantees to more than 200 partner banks to support trade, creating import and export opportunities for enterprises across Asia and the Pacific. 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.