Andijan Bank Credit Line

completed

The project involves (i) provision of a long-term subordinated partially convertible credit line totaling up to US$3 million; and (ii) technical assistance (TA) to Andijan Bank, an Uzbek privately held commercial bank. The credit line will be used to provide sub-loans to small and medium sized enterprises (SMEs) to finance capital expenditures, investments for expansions, working capital and trade finance necessary for the development of the nascent Uzbek private sector.The sub-loan amount may be as low as US$10,000 and the maximum size is expected to be less than US$150,000. Eligible SMEs are expected to be privately owned, have sound management and balance sheet, have prepared a viable business plan, and have an export oriented business or have arrangements in place to get foreign exchange. The project seeks to address the scarcity of term finance in Uzbekistan, especially to recently privatized or newly created private SMEs. According to the International Monetary Fund (IMF), it is very difficult for SMEs to obtain foreign exchange through official channels since the intensification of foreign exchange restrictions in late 1996. The credit line will support commercially viable projects in the country''s emerging private sector by facilitating term and other financing in hard currency.