The financing agreement with Aloqabank aims to meet the growing demand for Sharia Compliant trade finance among the clients of the Bank
Jeddah, Kingdom of Saudi Arabia: The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a trade finance agreement with Aloqabank, Uzbekistan. The US $15 Million facility is the first allocated to Aloqabank as it joins the growing network of the Corporation’s partner banks in Uzbekistan.
The facility will support the import and pre-export financing needs of Aloqabank clients, particularly SMEs. The financing shall equally support the Bank’s quest to expand its Sharia Compliant trade finance offering and help the private sector clients, especially SMEs, with recovery in post COVID-19 period.
This agreement, which falls under the US$ 500 million Framework Agreement, between the Republic of Uzbekistan and ITFC was signed by Mr. Abdihamid Aweis Abu, ITFC’s General Manager, Trade Finance, and Mr. Khasan Rakhmatov, Deputy Chairman of the Management Board of Aloqabank.
Commenting on the agreement, Mr. Abdihamid said: “ITFC believes in the ability of the private sector to be a catalyst of post-covid economic recovery, and this new partnership with Aloqabank provides us with another platform to support the SMEs in Uzbekistan. We are committed to building this partnership in ways that will make it impactful for the bank, its clients, and the economy in general.”
Since 2018, ITFC has approved 18 Line of Trade Finance Facilities for the total amount of USD176 million in favor of banks in Uzbekistan to support the private sector, especially SMEs.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) 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 US$61 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.