International Islamic Trade Finance Corporation Signs US$8 Million Trade Finance Agreement with Uzbekistan based ‘Trustbank’
This Line of financing is in line with ITFC’s ‘Recovery Response Program’ (RRP), aimed at mitigating the adverse socio-economic impact of COVID 19 which is expected to last longer than immediate health impact of the virus
Support for the private sector is critical in safeguarding value chains across the country and the wider region
The International Islamic Trade Finance Corporation (ITFC) (https://www.ITFC-IDB.org/), member of the Islamic Development Bank (IsDB) Group, signed a US$8 million Murabaha-structured line of trade finance with the private joint stock bank, Trustbank in Uzbekistan, to minimize the impact of COVID-19 by supporting the import and pre-export financing needs of SMEs in the country.
The financing is the second operation in favour of Trustbank, with the first being approved in 2018 and successfully implemented in 2019. The financing falls under a US$500 million Framework Agreement between the ITFC and Republic of Uzbekistan that was signed in April 2019, setting out a strategy to provide lines of finance to local banks in Uzbekistan with a mandate to support the private sector.
Commenting on the Murabaha Financing Facility, Eng. Hani Salem Sonbol, ITFC CEO, said: “ITFC’s second line of financing in favour of Trustbank reflects its commitment to helping Uzbekistan fight back against the social and economic impact of the coronavirus pandemic. Support for the private sector is critical in safeguarding value chains across the country and the wider region. This operation is in addition to five other lines of finance in favour of local banks in Uzbekistan since 2018 – reflecting the ITFC’s unbending commitment to the nation of Uzbekistan, its industry and its people.”
Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
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About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) (https://www.ITFC-IDB.org/) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$51 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.