The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank (IsDB) Group, has inked a deal with Aloqabank in Uzbekistan to provide trade financing. This agreement underscores ITFC's dedication to backing the private sector, especially small and medium-sized enterprises (SMEs) in member countries of the Organization of Islamic Cooperation (OIC), with a focus on Uzbekistan.

The financing, totaling $15 million, follows the Murabaha structure and aims to aid private sector entities with their import and export financing requirements. The agreement was formalized by Mr. Abdihamid Abu, ITFC's General Manager for Trade Finance, and Ms. Kammuna Irisbekova, Chairperson of the Management Board at Aloqabank.

Mr. Abdihamid expressed optimism about Uzbekistan's economic potential, particularly in its SME sector. He emphasized ITFC's dedication to supporting partners like Aloqabank in providing growth financing for SMEs across various industries. He believes this collaboration will enhance SMEs' access to funding, thus fostering economic growth in the country.

Ms. Irisbekova highlighted the significance of supporting SMEs, noting their role in driving innovation, job creation, and economic vibrancy. She acknowledged the challenges SMEs face, including limited access to financing and resources. Through the partnership with ITFC and Aloqabank, she aims to empower SMEs with the necessary financial tools and expertise to thrive and contribute meaningfully to the economy.

Since 2018, ITFC has provided over $423 million in facilities to 12 local banks in Uzbekistan, catering to the import and pre-export trade finance needs of the private sector. These initiatives target SMEs and women-led ventures, aiming to stimulate economic growth.

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