The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) announced on June 18 that it concluded an agreement with the National Bank of Uzbekistan (NBU), the largest state-run bank in the country, to increase the ceiling of its Interbank Export Loan to the NBU from the current USD 60 million to USD 100 million on June 17.
Korea Eximbank Chairman Lee Duk-hoon signed such an agreement with NBU Chairman Saidakhmat Rakhimov at the Tashukant Presidential Palace in Uzbekistan at the presence of both Korean and Uzbekistan presidents.
Under an Interbank Export Loan, Korea Eximbank establishes a credit line with a local bank in a foreign country and lends money to the bank, which will extends loans to local companies importing goods from Korea. It is a financial tool enabling Korea Eximbank to support the exports of Korean companies via foreign banks without having to establish a local office.
A resource-rich hub in Central Asia, Uzbekistan has recently been stepping up efforts to develop infrastructure, energy and natural resource sectors whereby demands for related equipment and machinery made by Korean companies have been on the rise.
The agreement to raise the ceiling will enable small and medium-sized exporters in Korea to collect the proceeds of their sale upon shipment of their products without delay while the local importers will be able to make import payment at better conditions through low interest rates and various repayment choices. Hence, a win-win partnership between Korea and Uzbekistan is expected to be reinforced.
After the signing ceremony, Chairman Lee remarked, “Our bank’s USD 100 million credit line agreement with the NBU will further strengthen the financial support Korean companies can get to expand their businesses in the region.”
On the same day, Korea Eximbank signed another EDCF loan agreement worth of USD 14.3 million with the Uzbekistan government to support the Uzbekistan’s National Educational Electronic Library Project. Chairman Lee has signed the loan agreement with the First Deputy Prime Minister Rustam Azimov at the cabinet office in Toshkent, Uzbekistan.
A total of 11616 libraries in Uzbekistan including the Navoiy National Library responsible for preserving cultural heritage and spreading knowledge are in desperate need of electronic consolidation to enable easier access by the people.
To address this, the Uzbekistan government has decided to establish the country’s first ever e-library by using Korea’s top class ICT and link the system with libraries across 20 major provinces and requested the Korean government to provide EDCF loan for the project.
Hence, the Korean government approved to provide USD 14.3 million in EDCF loan to Uzbekistan to establish the national electronic library system, set up a digitalizing center and a multimedia center, support consulting and training, and transfer facility repair and maintenance skills.
The Uzbekistan government expects that the project will lay the groundwork to digitalize and preserve the country’s important cultural and historical information while greatly reducing the knowledge and information gaps existing in the society.
Korea’s ICT companies are expected to gain speed in building up new markets in Central Asia through participating in this project and demonstrating the superiority of their technologies.
After the signing ceremony, Chairman Lee said, “Uzbekistan, with its abundant natural resources, is being recognized as Korea’s important partner of economic cooperation as can be seen in President Park Geun-hye’s Eurasia Initiative.” He added, “Through this EDCF project, Korean companies can transfer their highly advanced technologies to Uzbekistan and will be able to gain a foothold in Central Asian markets.
As of today, Uzbekistan is EDCF’s largest recipient in Central Asia, with committed EDCF loans reaching USD 250 million for eight projects.
