EBRD provides Uzpromstroybank with a $50 million loan

The European Bank for Reconstruction and Development (EBRD) provides Uzpromstroybank (UzPSB) with a loan in the amount of $50 million, with the possibility of converting into the Bank's shares. The ceremony of signing the package of agreements took place today, July 27.

The funds will be used to lend to local SMEs and support green investment.

UzPSB plans to finance local small and medium-sized enterprises operating on the territory of Uzbekistan using the loan received. At the same time, at least 20% of the amount provided will be used to finance projects related to climate change, which will allow the bank to expand its green banking program.

These agreements have become a logical continuation of the hard work of the parties, carried out in accordance with the decree of the President of Uzbekistan "On the strategy for reforming the banking system of the Republic of Uzbekistan for 2020-2025" and the resolution of the Cabinet of Ministers "On measures to further transform the joint-stock commercial bank Uzpromstroybank and its subsequent privatization with the participation of the International Financial corporations." These documents indicate the need to reform the banking sector in Uzbekistan through a comprehensive transformation of commercial banks with a state share, the introduction of modern banking standards, information technologies and software products, the sale of the state block of shares of banks on a competitive basis to investors with appropriate experience and knowledge, as well as a parallel reforming commercial banks and enterprises with a state share.

By the way, since 2018, Uzpromstroybank has been working closely with leading financial institutions such as the IFC and the EBRD on preparing for privatization by strengthening the bank’s corporate governance practices, reviewing business processes, commercializing its operations, improving the risk management system and treasury operations, as well as assistance to the bank in the development of green banking.

After diagnosing and building a client-centric business development model, the third stage of transformation is currently being carried out, where a new business model of the bank is being introduced with the updating of the information system and related infrastructure.