Uzbekistan SME Credit Line II

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A medium-term credit line of US$ 120 million to be made available to a group of Uzbek banks for on-lending to private sector companies undertaking investment projects in Uzbekistan. Project objectives: 1) Support of private sector companies in Uzbekistan, thereby assisting the transition process; 2) indirect financing of projects that the EBRD cannot finance due to their size; 3) continued support of the financial sector and financial intermediation in Uzbekistan. The loan will support the growth, development, and strengthening of the private sector in general by providing needed term funds for the development of private enterprises in Uzbekistan. A group of Uzbek banks to be funded as follows: First phase: National Bank of Uzbekistan US$ 60 million Asaka Bank US$ 30 million Second phase: UzPromstroy Bank US$ 15 million Pakhta Bank US$ 15 million The US$ 120 million (ECU 96 million equivalent) credit line will provide funding to the participating banks to promote the increase of medium-term lending to private sector companies undertaking investment projects in Uzbekistan. US$ 120 million (ECU 96 million equivalent). The participating banks will follow the EBRD's "Environmental Procedures for EBRD Intermediated Lending through Local Banks" in relation to all sub-loans financed through the credit line. In implementing these procedures, the participating banks will assess potential environmental issues associated with sub-projects which are required to comply with local and/or national health, safety, environmental and public consultation requirements. The participating banks will report annually to the EBRD on environmental issues related to the credit line. Technical cooperation funds may be required for the training of personnel in participating banks in the use of the environmental procedures.