The International Islamic Trade Finance Corporation (ITFC) and Hamkorbank have strengthened their collaboration through a new financing agreement. This partnership saw the signing of an additional $30 million under the existing Line of Trade Financing Agreement. The signing ceremony took place at ITFC’s headquarters in Jeddah, Saudi Arabia, attended by a high-level delegation from Hamkorbank.
Details of the Financing Agreement
The agreement was signed by Eng. Adeeb Y. Al Aama, CEO of ITFC, and Mr. Bakhtiyorjon Juraev, Chairman of Hamkorbank’s Management Board. This new facility increases the total financing between the two entities to $90 million. It marks a significant milestone as the highest stand-alone ITFC private sector facility in Uzbekistan.
- Amount: $30 million increase
- Total Financing: $90 million
- Signatories: Eng. Adeeb Y. Al Aama and Mr. Bakhtiyorjon Juraev
- Location: ITFC Headquarters, Jeddah, Saudi Arabia
Supporting Economic Growth
This expanded collaboration aims to bolster the growth of small and medium-sized enterprises (SMEs) and enhance private sector resilience in Uzbekistan. The facility aims to support initiatives promoting women’s entrepreneurship, green finance, and food security.
This agreement is part of a broader $600 million Framework Agreement signed in March 2024 between Uzbekistan and ITFC. The Framework Agreement seeks to prioritize support for the private sector and SMEs through various trade finance facilities.
Reaffirming Commitments
Eng. Adeeb Y. Al Aama emphasized the significance of this partnership: “This expanded collaboration reflects ITFC’s dedication to bolstering private sector support and advancing Islamic finance in Uzbekistan.”
Furthermore, Mr. Bakhtiyorjon Juraev expressed his anticipation for the future of this partnership, stating, “This agreement is crucial for expanding our Islamic Financing portfolio, aligning with our commitment to provide ethical financial solutions.”
ITFC’s Role in Uzbekistan
Uzbekistan has been a member of ITFC since 2019. The organization has played a vital role in addressing the country’s trade financing needs, endorsing a cumulative $950 million to local banks. ITFC’s work supports the advancement of the private sector and enhances the accessibility of Shariah-compliant financial services.
