The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) announced that it signed a framework agreement with the National Bank for Foreign Economic Activity of Uzbekistan (NBU*), the largest national bank in Uzbekistan, for USD 2 billion in financing.
-NBU is Uzbekistan's largest national bank that was established in 1991 to facilitate the republic's foreign trade. It specializes in international finance and FX operations.
Korea Eximbank Chairman Lee Duk-hoon met with NBU Chairman Saidakhmat Rakhimov at the Blue House in Korea and signed the framework agreement to provide Korea Eximbank's financing of USD 2 billion, exchange information on development projects in Uzbekistan, reduce foreign exchange regulation and give preferential treatment to Korean companies when they enter Uzbekistan's market.
The meeting was held at the presence of President Park Geun-hye as well as President Islam Karimov of Uzbekistan.
Uzbekistan is the hub of Central Asia and top 10 natural gas producer in the world. Recently, Uzbekistan has been stepping up development in energy, construction, infrastructure sectors where investments by Korean businesses have been increasing.
With the establishment of the framework agreement, the two institutions will be able to provide timely information on development projects to Korean companies, thereby increasing their opportunities to join development projects by using KEXIM financing.
After the signing ceremony, Chairman Lee said, "The framework agreement between Korea Eximbank and NBU will serve as a bridgehead which enables Korean businesses to participate in development projects in Uzbekistan." He added, "Korea Eximbank will provide full support for the development projects in Uzbekistan and steadily strengthen ties with the Uzbekistan government and NBU to make Uzbekistan the hub country in the context of the Eurasia Initiative."
On the same day, Korea Eximbank signed the loan agreement with the finance ministry of Uzbekistan to provide USD 33 million in EDCF** loans for the Further Development of Information and Communications Technology in Education Project.
- The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with the developing world and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. As of end of 2014, EDCF has committed over a total of KRW 11.6 trillion in loans for 337 projects in 52 countries.
At the presence of the presidents of the two countries, Chairman Lee signed the loan agreement with Uzbekistan's First Deputy Prime Minister Rustam Azimov.
The Further Development of Information and Communications Technology in Education Project is a follow-up project to the Informatization of General Education Schools of Uzbekistan Project conducted in 2006 that made computer labs in all elementary schools across the country.
In 2006, the Korean government provided USD 30 million for the Informatization of General Education Schools of Uzbekistan Project in Uzbekistan, helping successfully set up computer labs and central multimedia contents development centers in 1770 elementary schools.
The follow-up project aims at setting up 2229 computer labs in elementary schools in Uzbekistan and providing computer training. When the project is completed, all 9698 elementary schools in the country will have installed computer labs.
Thanks to these EDCF projects, it is anticipated that the overall quality of elementary school education and educational effectiveness will be enhanced based on increased IT-based education.
After the signing ceremony, Chairman Lee said, "This EDCF financing will help Korea's advanced IT technologies be transferred to Uzbekistan and also pave the way for more Korean firms to enter the IT market in Central Asia."
