Tashkent, Uzbekistan (UzDaily.com) -- On 6 May, in Vienna (Austria), the OPEC Fund for International Development (OFID) signed a loan agreement with Uzpromstroybank in the amount of US$20 million, aimed at satisfying the demand of local enterprises of Uzbekistan for trade financing.

The loan will expand the capabilities of Uzpromstroybank in providing financial services to representatives of small and medium enterprises, which is an important factor in economic growth and the creation of new jobs. The Bank will provide trade finance to sub-borrowers in various sectors of the economy, such as agriculture, healthcare, construction and the textile industry.

Reforms initiated by the government of Uzbekistan open up the country’s economy and stimulate private sector investment. OFID supports Uzpromstroybank in expanding its SME portfolio using an existing customer base with more than 23,000 customers. This partnership will improve the access of local companies to trade finance.

“OFID has long supported the socio-economic development in Uzbekistan, but this is our first trade finance deal with this financial institution,” said OFID CEO Dr. Abdulhamid Alkhalifa. “This deal is a good example of how the private sector can contribute to development, and we are pleased to support SMEs, a vital sector in any economy.” We stand ready to help Uzbekistan make progress towards achieving UN Sustainable Development Goal 8, which promotes inclusive and sustainable economic growth and employment.

OFID and Uzbekistan have been collaborating on socio-economic development for more than two decades.