State corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” and National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) concluded a memorandum of cooperation. The ceremony was held on 5 April in Kremlin in the presence of the President of the Russian Federation Vladimir Putin and the President of the Republic of Uzbekistan Shavkat Mirziyoyev who was on an official visit to Moscow.
For Vnesheconombank, the memorandum was signed by its Chairman Sergey Gorkov, for NBU – by NBU’s Chairman of the Board Sukhrob Holmuradov.
The financial institutions agreed to estimate the prospects of joint participation in the implementation of investment projects, including infrastructure, manufacturing, high technology and export projects.
The banks are prepared to consider the allocation of up to USD 500 mn or equivalent in other currencies to finance the above projects. The term of funding is to be determined on a case-by-case basis, but will not exceed 15 years.
Additionally, VEB and NBU will elaborate jointly on, and effect, trade finance transactions, including transactions in national currencies, to promote trade and economic relations between Russia and Uzbekistan. The memorandum also provides for collaboration on financial markets and promotion of best practices in banking technologies and services.
In order to effectively develop the areas of cooperation, Vnesheconombank and National Bank for Foreign Economic Activity of Uzbekistan agreed to attract debt financing through syndicated loans or otherwise and arrange for transactions with derivatives for hedging the risks, assist with technical, financial and economic due diligence and provide credit advisory services for joint projects.
Vnesheconombank and National Bank for Foreign Economic Activity of Uzbekistan have been cooperating since 2005 both on bilateral basis and as part of the Shanghai Cooperation Organization Interbank Association (SCO IBA).
National Bank for Foreign Economic Activity of the Republic of Uzbekistan was established in September 7, 1991 by the Degree of the President of the Republic of Uzbekistan. The largest bank in Uzbekistan in terms of assets, it combines the functions of a project finance institution and commercial, investment and saving banks. Its activities are mainly focused on the implementation of the policy of the Government of the Republic of Uzbekistan in the field of foreign economic relations and are aimed at promoting and strengthening economic cooperation with other countries, expanding Uzbekistan’s export potential, improving exports and imports of goods and services, servicing foreign economic operations, accumulating foreign currency funds and protecting the country’s currency interests. The bank’s objective is to create a financial institution capable of servicing foreign trade transactions between Uzbek companies on an international level, improve the export potential, attract foreign investment to Uzbek economy and introduce cutting-edge technologies. The Bank has subsidiary Asia-Invest Bank in Moscow.