German banking giant Deutsche Bank has extended a syndicated loan of €165mn to SQB, Uzbekistan’s second-largest lender, as announced by the bank’s information service.
This financial move aligns with the directive from Uzbekistan’s president, urging commercial banks to secure foreign investment and expand external financing to support various client investment projects.
The loan is set to strengthen numerous economic sectors within Uzbekistan. Primarily, the funds will be channeled towards job creation, particularly in the production of industrial and construction materials.
Additionally, it will finance projects aimed at medium-sized businesses that have foreign investment involvement. This strategic infusion of capital is expected to invigorate the national economy and promote sustainable growth across various industries.
The announcement comes on the heels of an investment in 2022 when the European Bank for Reconstruction and Development (EBRD) provided a $50mn convertible loan to SQB.
In a related development, the buildings and structures of SQB located within the Tashkent City International Business Center have recently been listed for sale. This move is part of a broader strategy initially aimed at privatizing SQB by the end of 2022 and 2023. However, the bank remains under state ownership due to various setbacks.
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