The European Bank for Reconstruction and Development (EBRD) is taking significant strides in promoting sustainable finance and trade in Uzbekistan through a financial package totaling $45mn (€42.5mn) extended to Ipak Yuli Bank, one of the country's leading private lenders, EBRD reported.
The financial facility is structured into two key components. The first entails a senior loan of up to $20mn (€18.9mn) under the EBRD's Uzbekistan Green Economy Financing Facility II (GEFF Uzbekistan II). This marks a pioneering step as the first loan under GEFF Uzbekistan II, aimed at enhancing access to green and climate-resilient technologies for local households and small to medium-sized enterprises, all of which will be disbursed in the local currency.
The second component involves a $25mn (€23.6mn) limit increase under the EBRD's Trade Facilitation Programme (TFP), elevating Ipak Yuli Bank's total TFP limit to $50mn (€47.2mn). This expanded limit is set to amplify Ipak Yuli Bank's role as one of the most active TFP-issuing banks in Uzbekistan, facilitating the growth of its trade finance business. The additional funding aims to assist Uzbek firms in importing essential goods, services, and equipment while also fostering the export of local products.
The GEFF Uzbekistan II receives backing from technical cooperation funding provided by the Climate Investment Funds (CIF), with contributions from Denmark, Netherlands, Switzerland, and the United Kingdom. The Action for Equality and Gender Multi-donor Cooperation Fund (A4EG) also supports the initiative with contributions from Japan, Lithuania, and Taipei China, emphasizing the commitment to inclusive green lending.
This financial initiative aligns with the EBRD's Green Economy Transition (GET) approach, a strategic framework aiming to transform the Bank into a majority green institution by 2025. The GET approach emphasizes increasing green financing to over 50% of the EBRD's annual business volume by 2025. Since 2006, the EBRD has committed to €49bn in environmentally friendly investments and supported over 2,600 eco-friendly initiatives, anticipating an annual decrease of 124 mn tonnes in carbon emissions.
So far, the EBRD has committed an investment of nearly €4.46bn in a total of 146 projects in Uzbekistan, reflecting its commitment to fostering sustainable development in the region. The Ipak Yuli Bank financial package stands as a testament to the EBRD's dedication to catalyzing green initiatives and supporting the growth of trade in Uzbekistan, marking a pivotal moment in the country's journey toward a more sustainable and resilient future.
Earlier, Daryo reported that President Shavkat Mirziyoyev of Uzbekistan engaged in a high-level discussion with Adil Reno-Basso, the President of EBRD, during the World Climate Action Summit (COP28). The focus of their conversation was the expansion of their robust partnership. President Mirziyoyev commended the substantial progress in their collaboration, highlighting that the EBRD's investments in Uzbekistan have exceeded an impressive €3.5bn.