By Josephine Akaerr
The International Islamic Trade Finance Corporation (ITFC), 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, ITFC CEO, Eng. Hani Salem Sonbol 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.”