Tashkent, Uzbekistan (UzDaily.com) - On 13 December 2019, a ceremony of signing loan agreements between Ipoteka Bank and the EBRD in the amount of 18 million euros was held.

At the signing ceremony was attended by representatives of the EBRD, headed by Alkis Vrienios Drakinos, head of the EBRD in Uzbekistan, and members of the board of JSIB Ipoteka Bank.

The European Bank for Reconstruction and Development has decided to provide a credit line in the amount of 18 million euros to Ipoteka Bank.

Ipoteka Bank is one of the leading financial institutions and is one of the four largest banks in the Republic of Uzbekistan. Partnership between Ipoteka Bank and the EBRD began to form in 2004, at the same time the Uzbek received a credit line from the EBRD to finance small businesses.

Thanks to these credit lines, representatives of small businesses in Uzbekistan will gain greater access to the financing package provided by the EBRD Mortgage Bank. These funds will be offered to enterprises for investment, which will increase their competitiveness and sustainability. Today, 50-60 percent of GDP falls on small businesses and private entrepreneurship.

The ability to finance promising projects is one of the key requirements for the development of the real sector of the economy. This is the second the EBRD line provided to Ipoteka Bank in addition to the Trade Facilitation Program, under which the EBRD began cooperation in 2017.

Thanks to an extensive network of 39 branches and more than 620 branches throughout Uzbekistan, the Ipoteka Bank has the potential to provide the necessary financing for micro and small enterprises in Uzbekistan, especially enterprises in regions outside the capital, which, in turn, will also allow the bank to significantly increase your customer base.

In the process of signing the agreement, Alkis Vrienios Drakinos, head of the EBRD in Uzbekistan, said: “We are deepening our partnerships with Ipoteka Bank to support lending to SMEs. We consider the SMEs as a priority, as they play an increasingly important role in the economy of Uzbekistan. We are confident that fruitful cooperation will bring long-term benefits for the Uzbek financial sector.”

The management of the Mortgage Bank expressed confidence that the funds for trade financing and long-term lending to small businesses will help strengthen the EBRD’s potential and will be an excellent asset for the development of the economy of the Republic of Uzbekistan.

Fundamental changes in Uzbekistan in recent years have allowed the EBRD to significantly increase investments in the development of the country's economy. Last year alone, the Bank invested nearly 400 million euros in the country, and the development of the private sector is one of the priorities. The efforts were rewarded with strong growth, according to the latest forecasts of the EBRD, an increase in GDP by 5.8 percent is expected in 2020.