Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank’s (ADB) Trade and Supply Chain Finance Program (TSCFP) and Private Joint-Stock Commercial Bank “Davr Bank” have signed an issuing bank agreement to further promote trade in Uzbekistan.

The document signing ceremony was held on 12 September at the premises of ADB Representative Mission in Uzbekistan. The ceremony was attended by Enrico Pinali, Officer-in-Charge of ADB in Uzbekistan; Can Sutken, Ankita Pandey, Relationship Managers with TSCFP; and Abdumajid Samadov, Chairman of the Board of Davr Bank PJSCB.

"We are glad to add Davr Bank as 11th bank to the Trade and Supply Chain Finance Program. We look forward to building this partnership and boost trade finance portfolio, helping fill the trade finance gaps," said Enrico Pinali, Officer-in-Charge of ADB in Uzbekistan.

“With this agreement we are increasing our commitment to Uzbekistan and helping more companies get the funding they need to boost trade and jobs. This is critical given the disruptions in supply chains caused by the global pandemic, more recently the evolving geopolitical landscape and the challenges related with the food security” said ADB Relationship Manager for Uzbekistan, Can Sutken.

In Uzbekistan, the TSCFP has supported US$2.1 billion in trade in through 767 transactions from inception to March 2022. In addition to filling market gaps, the Programme’s objective is to mobilize private sector capital / involvement in developing Asia. US$1.2 billion of the total support to Uzbekistan through the TSCFP was co-financed by the private sector. In 2021 only, the TSCFP supported 121 transactions valued at US$327.9 million – USD166 million of which was co-financed by the private sector.

"Our first experience of cooperation between the bank and international financial institutions began precisely with the ADB. I am sure, these funds allocated to Davr Bank within the framework of the Trade Finance Program will serve as a powerful impetus for the development of small and medium-sized businesses in Uzbekistan," said Chairman of the Board of Davr Bank PJSCB, Abdumajid Samadov. 

Backed by ADB’s AAA credit rating, TSCFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia and the Pacific to engage in import and export activities. Since 2009, ADB’s TSCFP has supported around 20,000 SMEs across developing Asia in sectors ranging from commodities and capital goods to medical supplies and consumer goods. 

TSCFP complements its financial support with knowledge products, including a study that quantifies market gaps for trade finance, initiatives to increase the role of women in banking, efforts to enhance environmental safeguards, and works to fight crime through greater transparency in the global financial system. In 2020, TSCFP developed an interactive mapping tool for the supply chains of vital COVID-19-fighting products to target slowdowns and blockages in those supply chains. It also provides workshops and seminars to increase knowledge and expertise in matters related to finance, trade, risk management, and fraud prevention.

DAVR Bank is a privately-owned bank in Uzbekistan with focus on MSME and retail segments. As of 3Q 2021, the bank ranked 17th by loan portfolio and held a market share of 0.6 per cent. 

Uzbekistan joined ADB in 1995. Since then, ADB has committed loans, grants, and technical assistance amounting to US$10.4 billion for Uzbekistan. Supporting private sector development is a key strategic priority under ADB’s country partnership strategy for Uzbekistan, 2019–2023, which will help to move the country toward a vibrant and inclusive market economy.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.