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By Trend

Netherlands’ Entrepreneurial Development Bank (FMO) is open to new investments in the financial sector in Uzbekistan, if the banks will fit FMO’s strategy of contributing to financial inclusion, the representative of FMO told Trend.

"It is in our mandate to invest in privately held institutions in Uzbekistan. We want to have an active role in the development of the financial sector of the country," the representative stated.

Recently Trend reported that FMO will provide a loan to Hamkorbank of Uzbekistan for $100 million to support women's and youth entrepreneurship.

Hamkorbank is one of FMO’s Financial Institutions clients in Uzbekistan.

"FMO is partnering with Hamkorbank since 2012 when we became their lender and shareholder. Through our investments in local partners like Hamkorbank we aim to support our development strategy in the country," the representative said.

For example, the new $100 million senior loan facility consists of a committed facility of $50 million and an uncommitted facility also of $50 million. The loan can be used in local currency UZS as well as in USD.

"The proceeds of the loan are used by Hamkorbank to finance projects supporting Reducing Inequalities (Micro customers and Women, Youth, Agricultural SMEs) and eligible Green projects. All of this contributes to FMO’s development impact goals," the FMO’s spokesperson noted.

The representative also stated that FMO is always open to consider new investment opportunities in Uzbekistan which are in line with their development banking mandate.

"We are currently discussing some possibilities with prospect Uzbek banks," the spokesperson noted.

Since 2012 FMO has been a loyal and stable investor in the private sector in Uzbekistan.

"Our monetary investments provide for capital and stable funding which strengthens financial profile of our customers. It also supports them with the execution of their business strategy," the representative said.

In addition, the spokesperson added that FMO also support Uzbek customers with targeted Technical Assistance in areas, such as Environmental & Social Risk Management and Corporate Governance through in-house and external support.

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