ITFC and Bank KYRGYZSTAN will help businesses recover from the pandemic

OJSC "Commercial bank KYRGYZSTAN" concluded a new agreement on trade financing with the International Islamic Trade Finance Corporation (ITFC), a part of which the small and medium business of the Kyrgyz Republic will benefit from trade financing mechanism ITFC in the amount of $ 4 million.

The new financing agreement between OJSC "Commercial bank KYRGYZSTAN" and ITFC to meet the requirements in trade financing will help restore businesses from the effects of the pandemic COVID-19. A loan of US $ 4 million, which is the second line of trade financing, aimed at supporting the needs for import and pre-export financing of the Bank's private sector clients, including to small medium businesses.

The partnership, signed by Abdihamid Aweis Abu, General Manager of ITFC for Trade Finance, and Dastan Kurmanbaev, Deputy CEO of the Bank's Management Board, was concluded as part of a three-year Framework Agreement for USD 150 million signed between ITFC and the Government of Kyrgyzstan in 2019. The agreement paves the way for further cooperation between the two parties to stimulate private sector development in the country.

Commenting on the agreement, Mr. Abdihamid Aweis Abu said: "Commercial Bank KYRGYZSTAN" has become a reliable partner of ITFC in an effort to stimulate the development of the private sector in the member countries.The small and medium business sector in the Kyrgyz Republic is still underdeveloped and faces a number of challenges, including access to finance. This financial agreement with OJSC "Commercial bank KYRGYZSTAN" aims to eliminate the funding gap for improving the competitiveness of small and medium-sized businesses. This is especially important now that businesses are recovering from the effects of the pandemic. The Trade Finance Agreement will enhance their integration into regional and global value chains through the development of trade relations. ”

Dastan Kurmanbaev, Deputy CEO of the Board of Commercial Bank KYRGYZSTAN OJSC, expressed deep gratitude to ITFC for the beneficial cooperation and provision of funds to support small and medium-sized businesses. He also emphasized "By signing this agreement, we hope that Islamic finance will become an alternative and most affordable source of financing for trade contracts of the Bank's clients."

About the International Trade Finance Corporation (ITFC)

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) group. It was created with the main goal of developing trade between the OIC member countries, which will ultimately contribute to the achievement of the overarching goal of improving the socio-economic conditions of people around the world. Beginning in January 2008, ITFC has provided OIC member countries with US $ 53.9 billion in funding, making it a leading provider of trade solutions for these member countries. With a mission to catalyze trade development for OIC member countries and beyond, the Corporation helps organizations in member countries gain better access to trade finance and provides them with the necessary trade capacity-building tools that will enable them to compete successfully in the global marketplace.