Azernews.Az

By Kamila Aliyeva

The Uzbek National Bank for Foreign Economic Activity signed a loan agreement worth $ 500 million with the Export-Import Bank of China.

The signing took place in Beijing on June 5 on the eve of the summit of the Shanghai Cooperation Organization (SCO), which will be held on June 9-10 in Qingdao.

Chinese Eximbank for the first time allocates a credit line to the Uzbek National Bank without requiring a government guarantee, the bank's press service reported.

The new credit line will be used to finance investment projects in Uzbekistan, which provide for the supply of high-tech equipment, without any restrictions on the directions of the economic branches.

The Uzbek National Bank has been cooperating with the Eximbank of China since 2004. Over the past period, 28 major projects worth about $ 1.2 billion in such sectors as healthcare, education, telecommunications, agriculture, energy, oil and gas, as well as in transport sphere were implemented.

The Eximbank of China is one of three institutional banks in China chartered to implement the state policies in industry, foreign trade, diplomacy, economy, and provide policy financial support so as to promote the export of Chinese products and services. Established in 1994, the bank is subordinated to the State Council.

The Uzbek National Bank also signed a loan agreement for $ 250 million with the state-owned China Development Bank (CDB) on the same day. The new loan agreement provides for financing of both large projects and small and medium-sized business projects that involve the supply of high-tech equipment to Uzbekistan, aimed at creating import-substituting and export-oriented industries.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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